Finance
Massachusetts foreclosure by 'power of sale' requires the lender to:
AObtain a court judgment before conducting the sale
BProvide statutory notice and hold a public auction after proper notice to the borrower✓ Correct
CWait 2 years before initiating foreclosure
DSell the property only to another bank
Explanation
Massachusetts non-judicial (power of sale) foreclosure requires the lender to comply with strict statutory notice requirements to the borrower and publish notice of the auction sale, then conduct a public auction.
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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.
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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
State-Specific Concepts
Continuing Education
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