John defaults on his mortgage in Tampa. What must the lender do to foreclose on the property under Florida's lien theory system?
Correct Answer
B) File a lawsuit in court to foreclose the lien
In Florida's lien theory state, lenders must file a judicial foreclosure lawsuit to enforce their lien rights since they don't hold legal title. Option A applies to title theory states where lenders hold title. Option C describes a notice requirement but doesn't complete the foreclosure process. Option D is incorrect as FREC doesn't oversee foreclosure proceedings.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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