A lender in New Hampshire wants to foreclose on a property after the borrower has defaulted. The mortgage contains a power of sale clause. Which statement best describes the lender's options?
Correct Answer
B) The lender may use the power of sale clause to conduct a non-judicial foreclosure without court involvement
Under RSA Chapter 479, a mortgage containing a power of sale clause allows the lender to conduct a non-judicial foreclosure sale without going through the court system. The lender must still comply with statutory notice requirements, but court involvement is not required when a valid power of sale clause exists.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
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