Finance
In Louisiana, a 'sheriff's sale' in a foreclosure proceeds as follows:
AThe lender acquires the property directly without any sale
BThe property is sold at public auction by the parish sheriff to the highest bidder after judicial foreclosure proceedings✓ Correct
COnly the lender may bid at the sheriff's sale
DThe property is automatically transferred to HUD
Explanation
In Louisiana's judicial foreclosure process, after obtaining a court judgment, the property is sold at public auction conducted by the parish sheriff. Any qualified bidder may participate — the highest bidder acquires the property and the proceeds satisfy the debt.
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Key Terms to Know
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.
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.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
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