What is a 'notice of default' in Delaware mortgage foreclosure?
Why A formal notice from the lender to the borrower stating that the mortgage is in default due to missed payments — initiating the foreclosure process Is Correct
Answer B: A formal notice from the lender to the borrower stating that the mortgage is in default due to missed payments — initiating the foreclosure process
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
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Key Terms to Know
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
State-Specific Concepts
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