A homeowner in Buffalo, New York has defaulted on their mortgage payments. The lender wishes to foreclose on the property. What type of foreclosure process must the lender follow in New York?
Correct Answer
D) Judicial foreclosure through the court system
New York is a judicial foreclosure state, meaning all mortgage foreclosures must proceed through the court system. The lender must file a lawsuit and obtain a court judgment before the property can be sold at foreclosure auction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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