Mortgages

Which of the following statements regarding liability of a subsequent transferee is TRUE? A If the buyer assumes the mortgage, the lender may seek payment only from the buyer for payment of the debt. B If the buyer assumes the mortgage, the lender may seek payment from both the original debtor and the buyer for payment of the debt. C If the buyer takes "subject to" an existing mortgage, then the buyer is personally liable upon default. D If the deed is silent as to liability, then the transferee is considered to have assumed the mortgage.

If the buyer assumes the mortgage, the lender may seek payment from both the original debtor and the buyer for payment of the debt.

Which of the following statements regarding lien states and title states is FALSE? A In a minority of states, granting a mortgage converts a joint tenancy into a tenancy in common. B A mortgage is treated as a lien that does not sever a joint tenancy in the majority of states. C In the majority of states, the mortgagee is treated as the holder of lien on the real property interest that is security for the debt. D In a "title state," granting a mortgage interest has no effect on a joint tenancy.

In a "title state," granting a mortgage interest has no effect on a joint tenancy.

Which of the following instruments constitutes the mortgagor's promise to repay the lender? A Note B Mortgage C Purchase money mortgage D Second mortgage

Note

FILL IN THE BLANKS. The mortgagor is the __________ and the mortgagee is the __________. A lender, borrower B borrower, lender C person with the security interest in the real property, borrower D lender, purchaser

borrower, lender

FILL IN THE BLANKS. A(n) __________ operates like a mortgage, but uses a trustee to hold title for the benefit of the lender. A(n) __________ is when the mortgagor transfers the deed to the property instead of conveying a security interest in exchange for the loan. A absolute deed; deed of trust B deed of trust; installment land contract C installment land contract; absolute deed D deed of trust; absolute deed

deed of trust; absolute deed