A Delaware homeowner has defaulted on her mortgage, and the lender has initiated foreclosure proceedings. The homeowner's attorney advises her that the lender cannot simply sell the property without court involvement. Which statement best explains why this is the case under Delaware law?
Correct Answer
B) Delaware uses only judicial foreclosure, requiring all mortgage foreclosures to proceed through the Court of Chancery before any sale can take place.
Delaware is exclusively a judicial foreclosure state. All mortgage foreclosures must be filed and adjudicated through the Delaware Court of Chancery. There is no non-judicial or power-of-sale foreclosure mechanism available under Delaware law, regardless of what language appears in the mortgage document. The court must issue a judgment before any foreclosure sale can proceed.
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Related Topics & Key Terms
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A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
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