Section 22 unit 6 exam

Which of the following is a potential ramification to the seller if a short sale is completed? A. A short sale can negatively impact the seller's credit, and the lender may seek a deficiency judgment for the amount not repaid. B. Completing a short sale means the seller will never again be legally allowed to own property. C. Not all states have ramifications for short sales, so it depends on which state the seller lives in. D. There are no ramifications. Short sales are just a quicker way to get a property sold.

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

Alternatives to foreclosure include deed in lieu of foreclosure, short sale, or ______. A. Bankruptcy B. Eviction C. Mortgage lien D. Specific lien

Bankruptcy

______ is a legal action that liquidates or restructures debt. It can have a long-lasting negative impact on the borrower's ability to obtain financing. A. Bankruptcy B. Foreclosure C. Judgement lien D. Tax sale

Bankruptcy

With this alternative to foreclosure, a borrower hands over the property to the lender rather than face foreclosure proceedings. A. Bankruptcy B. Repayment plan C. Short sale D. Voluntary conveyance of deed

D. Voluntary conveyance of deed

Rather than be foreclosed on, Jarod turned his deed over to his bank. This is called a ______. A. Bankruptcy B. Deed in lieu C. Judgement lien D. Short sale

Deed in lieu

Indiana is considered a ______ theory state. A. Foreclosure B. Judicial C. Lien D. Title

Lien

Kristoff got a bit behind on his mortgage and missed several payments. He and his lender devised a schedule that gives Kristoff an opportunity to make up those delinquent payments. What is this an example of? A. Bankruptcy B. Repayment plan C. Short sale D. Voluntary conveyance of deed

Repayment plan

Percy is losing his house because he can't make his payments. He owes more than it's worth and just wants to get out from under it. He decides to put it on the market and hope for the best. Percy will likely sell his home through ______. A. Bankruptcy B. Deed in lieu C. Judgement lien D. Short sale

Short sale

Ray is in a bit of a predicament. He owes more on his mortgage than his property is worth, but can no longer afford the payments. He receives permission from his lender to sell the property for less than what he owes. What is this an example of? A. Bankruptcy B. Repayment plan C. Short sale D. Voluntary conveyance of deed

Short sale

Who or what entity holds title to a property in Indiana while the loan is still active? A. The borrower B. The courts C. The lender D. The trustee

The Borrower

Which of the following best describes the foreclosure process in Indiana? A. Foreclosure is illegal in Indiana. B. It's used in cases where something other than property serves as collateral. C. No court involvement is required. D. The lender must file a lawsuit to initiate foreclosure proceedings.

The lender must file a lawsuit to initiate foreclosure proceedings.

Rather than face foreclosure, Tony decides to cut his losses. He voluntarily conveys his property to his lender. What type of foreclosure alternative is this? A. Bankruptcy B. Repayment plan C. Short sale D. Voluntary conveyance of deed

Voluntary conveyance of deed