Chapter 10

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

Abandoned

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

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...?

Grace period

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

Short sale

An acceleration clause is included in which of the following...?

The promissory note

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 Lieu of Foreclosure

A non-judicial foreclosure may be used on a...?

Deed of Trust

A delinquent borrower is said to be in...?

Default

The failure to fulfill a duty or promise is known as...?

Default

If 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...?

Deficiency Judgment

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...?

Deficiency Judgment

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...?

Mechanic's lien

A forbearance on a note is known as a...?

Moratorium

A judicial foreclosure is required when a ............is used?

Mortgage

Which of the following liens takes the highest priority over other liens...?

Tax lien

A non-judicial foreclosure is typically quicker to execute than a judicial foreclosure...?

True

Short sales typically occur when a property is said to be...?

Underwater