Question

Which of the following statements best describes non-judicial foreclosure?

A) The foreclosure process is overseen by a court
B) The lender can foreclose without court intervention
C) Only the borrower has the right to foreclose
D) Non-judicial foreclosure is prohibited in most states

Answer 1

The correct answer is B) The lender can foreclose without court intervention.

Step-by-step explanation:

The correct answer is B) The lender can foreclose without court intervention.

Non-judicial foreclosure is a legal process where the lender is able to foreclose on a property and sell it without involving the court system. The specific process varies by state, but typically involves notice to the borrower, publication of foreclosure sale details, and a public auction or sale of the property to repay the outstanding debt.

Non-judicial foreclosure is allowed in many states, but not all. Some states require the lenders to use the court system to foreclose on a property, which is known as judicial foreclosure. So, option A) is incorrect because judicial foreclosure involves court oversight.