RESTCH10
A lender has entered into an agreement with a defaulting borrower in which the lender has agreed to accept less than the outstanding loan balance. What term refers to this type of arrangement.
A short sale
A buyers property has been foreclosed on because they were unable to pay the mortgage and taxes. What type of auction would normally be conducted?
Courthouse Auction
A mortgage foreclosure sale was conducted in which the lender received less than the outstanding loan amount. What type of judgement could the lender file?
Deficiency Judgement
If the lender accepts a deed in lie of foreclosure, what additional expenses could the borrower incur?
IRS tax on the forgiveness of debt
A lender agrees to restructure the loan to make it more affordable to a borrower who is struggling to make the payments. What action has the lender taken?
Recasting
What will the lender require before agreeing to accept less than the states mortgage terms from a defaulting borrower?
a letter explaining their changed financial circumstances
What auction term indicates that the successful bidder accepts the property in the current condition?
as is where is condition
When a lender accepts a deed from the buyer as a voluntary conveyance, it is known as what?
deed in lieu of foreclosure
In order to avoid the foreclosure process the lender may agree to any of the following except:
file a lis pendens
a lender may agree to a forbearance in the event a borrower is unable to make their mortgage payments. The lender may agree to any of the following except:
forgiveness of the debt
What type of auction deals with real property that has been acquires as a result of defaulting borrowers by agencies such as hud or the va?
government
What is another name for a subject to mortgage?
nonrecourse loan
What is the first action the lender takes to formally start the foreclosure process?
record a lis pendens - lawsuit
Which explanation correctly defines short sale?
the lender agrees to accept a sale that is less than the outstanding loan balance
