Escrow & Title
When a Florida borrower fails to make mortgage payments and the lender files a lawsuit to foreclose, this is called:
ANon-judicial foreclosure
BJudicial foreclosure✓ Correct
CPower of sale foreclosure
DAdministrative foreclosure
Explanation
Florida is a judicial foreclosure state. The lender must file a lawsuit (judicial foreclosure) and obtain a court judgment before selling the property at a foreclosure sale.
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Key Terms to Know
Transfer Tax
A tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
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