Under Minnesota law, all of the following statements about the non-judicial foreclosure process under Chapter 580 are TRUE, EXCEPT:
Correct Answer
C) The lender obtains a court judgment as part of the standard Chapter 580 foreclosure process
Option C is the FALSE statement — and therefore the correct answer to this EXCEPT question. Non-judicial foreclosure under Chapter 580 does NOT involve court proceedings or a court judgment. That is precisely what makes it 'non-judicial.' The lender follows a statutory advertisement and public sale process without filing a court action. If a court judgment is desired (e.g., for a deficiency), the lender must use judicial foreclosure under Chapter 581 instead.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
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.
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