Asked by Changhao Zhang on Jul 07, 2024
Verified
Rae's mortgage payment check is received a day late by Big Bank.Big Bank refuses the check and accelerates the mortgage debt.Rae is unable to pay this demand,and Big Bank brings action to foreclose the mortgage.Discuss what defenses,if any,Rae has to the foreclosure action.
Big Bank
A term referring to the largest banks in a country or region, often with a significant influence on the national or global economy.
Foreclosure Action
A legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan.
Accelerates
The process of increasing speed or happening more quickly.
- Assess the jurisprudential elements and outcomes associated with mortgage foreclosure, alongside available defenses to foreclosure and residual liabilities.
Verified Answer
KN
Kenneth NalvarteJul 11, 2024
Final Answer :
Before invoking the acceleration clause,the mortgagee must genuinely believe that the mortgagor will not be able to make good on the debt and that the mortgagee's security interest is,therefore,threatened.In this case,however,Rae's check did arrive-though it was a day late.If the matter lands in court,Rae can argue that Big Bank did not act in good faith,because it refused to accept the payment check despite receiving it.
Learning Objectives
- Assess the jurisprudential elements and outcomes associated with mortgage foreclosure, alongside available defenses to foreclosure and residual liabilities.