finance 4

blanket lien

Gives the bank a claim to all current and future firm assets as collateral in case the primary collateral is insufficient and the borrowing firm defaults

deed in lieu

Short for "deed in lieu of foreclosure," this conveys title to the lender when the borrower is in default and wants to avoid foreclosure.

insured value

The cost of replacing a structure completely destroyed by an insured hazard.

assessed value

The value of an asset determined by tax authorities for the purpose of calculating taxes

recourse mortgage

allows the lender to sure the borrower for damages if foreclosure occurs

Alternatives to foreclosure include deed in lieu of foreclosure, short sale, or ______.

bankruptcy

Which process temporarily stalls foreclosure?

bankruptcy

who chooses an appraiser

chosen at random by the lender

Non-Judicial Foreclosure

foreclosure that does not require court proceedings or a judgment of foreclosure - the result of the power of sale clause in a deed of trust

value in use

is what the property is worth to the person using it

who issues the torrens system

issued and lists the state as the title guarantor

who provides the abstract of title

seller

How is title usually conveyed to the buyer during a foreclosure process?

through a referee's deed

When do capital gains tax, recaptured depreciation, and transfer taxes apply?

when investment properties are sold

Which of the following is a potential ramification to the seller if a short sale is completed?

A short sale can negatively impact the seller's credit, and the lender may seek a deficiency judgment for the amount not repaid.

the funnel system

A system that equates closed sales to the number of leads it takes to generate a sale Based on this, six leads = one client. That client represents 80% of a closed transaction. Calculate 80% of a closed transaction with an average dollar value of $8,750. $8,750 x .80 = $7,000 This means that each client = $7,000 in value.

cloud on title

Any document, claim, unreleased lien, or encumbrance that may impair the title to real property or make the title doubtful; usually revealed by a title search and removed by either a quitclaim deed or suit to quiet title. removed by the sellers

Which of the following best describes foreclosure by writ of entry?

Petition for legal ownership, opportunity to redeem property, notice of eviction if property is not redeemed

Which of these is an advantage to maintaining business and personal accounts separately?

it allows you to track business expenses for tax purposes

exclusions

limitations on covereage that are included in all policies of the same type

title commitment schedule B-2

lists the necessary expectations to the title (the item that will not be insured)

title commitment schedule B-1

names the requirements that must be addressed before a title policy can be issued

torrens system

only some states. A method of evidencing title by registration. form of land registration. may be used to obtain assurance of good title.

For the vast majority of loans, a single late ______ does not automatically mean the loan has gone into default.

payment

writ of entry foreclosure

petition to enter, repossession, notice of eviction

title committment schedule A

provides the facts of the transaction

who provides the evidence of title

seller

what are the 7 exceptions to schedule B-2

taxes covenants conditions restrictions easements mineral reservations (may be deleted or revised on the policy)

investment value

the expected rate of return

recaptured depreciation

the portion of an asset's sale price that is above its book value and below its initial purchase price Example: A $100,000 house has depreciated at $3,000 per year. After 10 years, $30,000 has been depreciated. At sales time, this amount is taxed at 25%. This recapture is in addition to any other capital gains.

evaluation

the study of a property that does not always return a price or value