Foreclosure Is Considered the Ultimate Recourse of the Lender Because

question 2

Multiple Choice

Foreclosure is considered the ultimate recourse of the lender because it allows the lender to bring about sale of the property to recover the outstanding indebtedness. All of the following statements regarding foreclosure are true EXCEPT:

• A) Foreclosure is a costly process for all parties involved.
• B) Only those claimants who are properly notified and engaged in the foreclosure suit can lose their claims to the property.
• C) When a lender forecloses on a property, it extinguishes all superior liens, bringing about a free and clear sale of the property. .
• D) The net recovery by a lender from a foreclosed loan seldom exceeds 80 percent of the outstanding loan balance and commonly is much less than this amount.

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Definitions:

Signal-Detection Theory

A means to quantify the ability to discern between information-bearing patterns and random patterns that distract from the information.

Perceptual Ability

The capacity to interpret and make sense of information gathered through the senses.

Response Tendencies

The habitual patterns or tendencies of an individual to react in a particular way to stimuli.

Specificity Theory

A theory suggesting that specific receptors in the body are responsible for specific sensations like pain.