When a Deed Is Given in Lieu of Foreclosure of the Mortgage,the

question 21

True/False

When a deed is given in lieu of foreclosure of the mortgage,the mortgagor no longer has an obligation to pay the mortgage note.

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Definitions:

Automatically Perfected

Refers to a security interest that is deemed perfected without the need for any additional filing or action by the secured party.

Security Interest

A legal claim or right granted over assets as collateral to secure the payment of a debt or performance of some obligation.

Purchase Agreement

A legal document outlining the terms and conditions under which a sale of property will take place.

Financing Statement

A document filed to give public notice to third parties of a secured party's interest in the collateral offered by a debtor.