At a California trustee's sale, the highest bid is $280,000. The outstanding loan balance is $320,000 and the property's fair market value is $300,000. What is the trustor's right of redemption after the trustee's sale?
Correct Answer
C) The trustor has no right of redemption after a non-judicial trustee's sale in California
In California, there is no statutory right of redemption after a non-judicial trustee's sale. Once the trustee's sale is complete, the sale is final and the former trustor cannot redeem the property. A right of redemption exists only after judicial foreclosure.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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