Real Estate Exam 3

pretrust deed recordation mechanic's lien, property taxes

3. Which of the following liens are NOT eliminated by a foreclosure sale?

notice of default

7. What document does a trustee record after being notified by the lender of the trustor's nonpayment?

subordination clause

8. What provision in an instrument of finance would permit a change in the priority of liens on a property?

grantor

9. Which of the following is NOT a party to a trust deed?

stated in the note

17. The nominal interest rate is:

alienation clause

18. With what type of clause does the entire balance of the loan become due and payable when an owner is alienating, transferring, or conveying a property?

promissory note

2. The basic instrument used to evidence an obligation or debt is a:

1% of the loan amount

20. A lender charges an origination fee, which includes points. One "point" is equal to:

holder in due course

4. A person who takes a negotiable instrument from another with no knowledge of defect is called a(n):

acceleration clause

5. A clause in a financial instrument that allows a lender to demand immediate payment of the entire note balance is known as a(n):

trustor

6. What do we call a borrower who secures a loan through a trust deed?

prices rise

A buyer's market becomes a seller's market when:

CRV

A property, to be purchased by a veteran, must have what type of appraisal?

MPRs Minimum Property Requirements

FHA and VA requirements that are often more restrictive than the building codes are called:

MIPs mortgage insurance premiums

FHA backed loans are protected by:

3 business days

How much time, after the buyer signs the loan application, does the lender have to provide a good faith estimate of closing costs (RESPA requirement)?

both lender and trustor

If the economy experiences an increase in inflation, who is protected by the increased equity?

Real Property Securities Dealer (RSPD)

In addition to a broker's license, what type of endorsement must a broker have to sell promissory notes or sales contracts?

private mortgage insurer

In addition to the FHA, a mortgage loan may be insured by:

FHA

Of the following government backed loans, which is insured?

Equity

What term refers to the amount left after deducting what is owed on a property from the market value of the property?

liquidity and marketability

When it comes to loans, lenders in the secondary market are concerned with:

Bank

Which of the following is considered an institutional lender?

demolition

Which of the following is not considered a "demand area" for borrowing money?

VA

Which of the following requires NO cash down payment on loans up to $240,000?

Interim Loan

The term that best describes a construction loan is a(n):

graduated payment mortgage

10. What type of fixed interest loan has payments that start out lower and gradually increase?

beneficiary

11. Should the trustor default, the trustee may have to sell the property for the:

third party

12. Another term for the trustee is:

borrower

13. The trustor is also known as the:

interest

16. Impound accounts are NOT used to pay:

leverage

1. The practice of purchasing real estate using a small amount of your own money and a large portion of borrowed funds is known as:

paid in full (recorded?)

14. The trustee issues a reconveyance deed when the promissory note is:

it is expressed as a yearly rate

15. Which of the following is FALSE concerning the APR?

FDIC

Banks in California are insured by the:

life insurance companies

The greatest source of shopping center financing is

down payment

The lower the loan-to-value ratio, the greater the:

GDP

The measure of the total value of production (goods and services) in the U.S. is called the:

loan-to-value (LTV)

The percentage of the appraised value that the lender will loan the borrower to purchase a property is called:

5 years

There is no prepayment penalty on an owner occupied 1-4 unit loan, if the loan is older than: