Texas Real Estate Finance - Chp 10 - Defaults and Foreclosures

Deficiency Judgment -

A judgment given by a court when the value of security pledged for a loan is insufficient to pay off the debt of the defaulting borrower.

Default -

Failure to fulfill a duty or promise or to discharge an obligation; omission or failure to perform any act.

A forbearance on a note is known as a...? AMoratorium BPermanent prohibition CLis pendens DForeclosure

Moratorium

A seller's attempt to sell their property whereby the liens are greater than the value of the property, is known as a...? Auction Foreclosure Lis pendens Short sale

Short sale

Acceleration Clause -

A condition in a real estate financing instrument giving the lender the power to declare all sums owing lender immediately due and payable upon the happening of an event, such as sale of the property, or a delinquency in the repayment of the note.

When an owner leaves their property without any just cause, the owner is said to have ...........the property? Abandoned Discharged Foreclosed Auctioned

Abandoned

The failure to fulfill a duty or promise is known as...? Default Discharge Rescission Omission

Default

A period of time that a lender offers to a borrower, which allows the borrower to make their required payments after the due date, is known as a...? Discharge period Omission period Grace period Default period

Grace period

An acceleration clause is included in which of the following...? The mortgage Both the promissory note and mortgage The promissory note The lien

The promissory note

Under an FHA loan, default occurs after ...........of non-payment by the borrower? A2 months B6 months C8 months D12 months

2 months

A judicial foreclosure is required when a ............is used? Deed of Trust Mortgage Quitclaim Deed Warranty Deed

Mortgage

Mechanic's Lien -

A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property.

This is a condition in a real estate financing instrument giving the lender the power to declare all sums owed to the lender immediately due and payable upon the happening of an event, such as sale of the property, or a delinquency in the repayment of the note...? Acceleration clause Release clause Sale clause Option clause

Acceleration clause

A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender is known as a...? Deed in Discharge Deed in Default Deed in Lieu of Foreclosure Warranty Deed

Deed in Lieu of Foreclosure

A delinquent borrower is said to be in...? Discharge Default Rescission Omission

Default

This is a judgment given by a court when the value of security pledged for a loan is insufficient to pay off the debt of the defaulting borrower...? Express Judgment Recorded Judgment Implied Judgment Deficiency Judgment

Deficiency Judgment

f a property is sold at a foreclosure auction for an amount less than the amount of outstanding debt on the property, the lender may file for a...? ADeficiency Judgment BExpress Judgment CRecorded Judgment DImplied Judgment

Deficiency Judgment

Which of the following is a governmental loan modification program...? AHAMP BRESPA CCFPB DTILA

HAMP (Home Affordable Modification Program)

A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property is known as a...? AMechanic's lien BJudgement lien CTax lien DMortgage lien

Mechanic's lien

A non-judicial foreclosure is typically quicker to execute than a judicial foreclosure...? T (True) F (False)

T (True)

HAMP (Home Affordable Modification Program)

The goal of HAMP is to help delinquent borrowers modify the terms of their home mortgage loan to an affordable level (i.e., no more than 31% of the borrower's pretax monthly income) using a combination of three factors: reduce the interest rate, increase the term up to 40 years, and reduce the principal on which interest is charged until the loan is repaid. Modifications are only available to owner occupants of one- to four-family dwellings with loan amounts not exceeding $729,750 for a single-family dwelling (amounts increase for two-, three-, or four-unit dwellings). This program is set to expire December 31, 2015.

Short sales typically occur when a property is said to be...? Above water Foreclosed Discharged Underwater

Underwater