RE-160 Lecture Notes - Lecture 29: Deficiency Judgment, Real Interest Rate, Mortgage Loan

• School: Diablo Valley College
• Department: Business Accounting/Management/Marketing/Real Estate
• Course: RE-160
• Professor: burnaford

Document Summary

Fixing price while it is the case that through public auction the best price is realized in practice only the mortgagee or the mortgagee and a small number of bidders appear at a foreclosure sale. Lenders rarely bid in excess of their claim but would bid to the extent of their claim where it is less than or equal to the market value of the security less foreclosure, resale, and holding costs. Nature of title at foreclosure sale courts makes no representation concerning the nature of the title that a buyer will receive. Title defects that existed prior to the foreclosure sale will continue with the title as it passes to the purchaser. Parties to foreclosure suit all parties who share the mortgagor"s interest must be enjoined in the foreclosure suit by the holder of the senior mortgage. Otherwise failure to do so may improve their position with the foreclosure of the senior lien.