Real Estate Chapter 5

Under a contract of sale, (aka: Real Property Sales Contract, Land Contract, Contract) the seller retains the title to the property until the entire contract has been paid off. This gives the buyer only an equitable title

A contract of sale passes:

Since the reconveyance deed transfers the title back from the trustee to the trustor it must be signed by the trustee.

A deed of reconveyance must be executed by the:

The first trust deed holder will receive his full $160,000 and the balance ($40,00O) will go to the second trust deed holder less foreclosure costs. The second trust deed holder will lose $20,000.

A forced sale of a property is made at a foreclosure sale and brings a total price of $200,000. If the balance of the first trust deed note is $160,000, and the balance of the second trust deed is $60,000,the holder of the second trust deed will receive:

purchase money mortgage

A mortgage given as part or all of the consideration for the purchase of the property

A loan that does not call for any payment on the original amount of the Loan is called a straight note

A promissory note that provides for payment of interest only during the term of the note would be:

Once the trustee has sold the property to satisfy the debt, the trustor/borrower has lost all rights of redemption or reinstatment.

After a trustee's sale is conducted and the property sold to the highest bidder, the trustor has lost what right?

Once the Notice of Default has been recorded, the Loan can be reinstated up to within 5 business days of the trustee sale. After that the lender can require a full payoff.

The maximum reinstatement period on a trust deed and note that is under foreclosure is:

A vendor is a seller.

The seller under a land contract is sometimes called the:

B. A deed of trust that is foreclosed in court follows the same procedure as a mortgage. There will be a one year period of redemption.

When a deed of trust is foreclosed through court action: A. It is the same as a foreclosure by trustee's sale B. The trustor has a one year redemption period C. It means there is a homestead on the property D. No deficiency judgment is ever allowed

The beneficiary is the Lender

When a loan is obtained to purchase real property, and a note and trust deed is executed, the party that furnishes the funds is the:

The "naked legal title" is held by the trustee.

When real property is encumbered by a deed of trust, the naked "legal title" to the property is held by the:

D. Under a deed of trust the borrower trustor retains possession of the property. Title is transfered to a trustee during repayment of the loan.

When real property is encumbered by a first trust deed and note, the: A. Beneficiary has possession of the property B. Trustor gives up possession of the property C. Trustee has possession of the property D. Trustor has possession of the property

A trust deed may be foreclosed in court or by Trustee's Sale.

When there has been a default under a trust deed it may be foreclosed by:

A lock-in clause prohibits the early pay off of the Loan

A seller of a home agrees to take back a second trust deed on the sale of her home but wants to make sure that the loan cannot be paid off in the first 3 years. In this case the loan should include :

A. Under a trust deed (naked legal) title to the property passes to a trustee until lender is paid off. Under a mortgage, the borrower retains the title to the property during the loan period

A trust deed differs from a mortgage in which of the following respects? A. Title to the property B. Amortization of the loan C. Recording of the loan document D. Possession of the property

Trustor/borrower signs the note and trust deed

A trust deed is signed by the:

It takes a minimum of 3 months plus 21 days to sell under a trustee's foreclosure. The Lender will receive his proceeds in approximately 4 months.

Once a lender commences a foreclosure under a defaulted deed of trust by trustee's sale, the lender will receive the proceeds from the foreclosure in approximately:

If the clause in the deed of trust or note permits the owner to pay a stated amount of dollars per month "or more" he can pay as much as he would Like and there would be no prepayment penalty.

The inclusion of which of the following clauses in a note and deed of trust permits the loan to be paid off at any time without a penalty?

When a loan has been paid off and the title is to be returned to the trustor (borrower), at the instruction of the beneficiary (the lender) the trustee issues a deed of reconveyance returning title to the owner/borrower. You know this!

The instrument used to remove the lien from the trust deed from the records is called

Date of recording

The thing that distinguishes a first trust deed from a second trust deed is the: