Question

When a deed of trust is used to provide collateral on a mortgage loan, all of the following are required in a foreclosure action EXCEPT:

Answer 1

When a deed of trust is used as collateral on a mortgage loan, several requirements must be met in a foreclosure action. One requirement that is not needed in non-judicial foreclosure is court approval.

Step-by-step explanation:

When a deed of trust is used to provide collateral on a mortgage loan, there are several requirements in a foreclosure action. These requirements typically include:

1. A default on the loan: The borrower must have missed payments or failed to meet the terms of the loan.
2. Notice to the borrower: The lender must provide written notice of the intention to foreclose and give the borrower an opportunity to cure the default.
3. Court approval: In some states, a court order may be required before a foreclosure can proceed.
4. Sale of the property: The lender will typically sell the property at a public auction to recoup the unpaid balance of the loan.

However, the requirement which is NOT needed in a foreclosure action involving a deed of trust is court approval. In states that allow non-judicial foreclosure, court approval is not required.