In a Tallahassee transaction, a closing coordinator asks about Florida's equity of redemption following a judicial foreclosure. Which statement correctly describes Florida law?
Correct Answer
A) The borrower's equity of redemption is cut off when the clerk files the certificate of sale after the foreclosure sale.
Under Fla. Stat. §45.0315, a mortgagor's equity of redemption is terminated at the later of the filing of the certificate of sale by the clerk or the time specified in the foreclosure judgment.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
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