Chapter 10 Quiz Take 1

Who is the trustor in a deed of trust?

Borrower

A trust deed can be used to secure a mortgage.

False

Mortgages are the same as trust deeds in that foreclosure is the cure for default.

False

Proceeds from a foreclosure sale go first to the lender, then to the borrower and then to the expenses of the sale.

False

The borrower under a deed of trust is called the beneficiary.

False

Upon default by the borrower under a deed of trust, the trustor issues a notice of default.

False

When default is declared on a loan secured by deed of trust, which of the following is true?

The successful bidder at the trustee's sale receives a trustee's deed at the time of sale.

A mortgage can be foreclosed judicially.

True

Regarding the non-judicial foreclosure of a deed of trust, the property is sold at auction.

True

The funds for a loan secured by a deed of trust are supplied by the beneficiary.

True

A neutral third party would be found in

a deed of trust

Under a deed of trust on real property, the trustee is

empowered to foreclose, upon notice of default, by a trustee's sale of the property.

The basic purpose of the deed of trust, also referred to as a trust deed, is the same as a ____________________.

mortgage

A borrower defaults on a deed of trust loan. Before the lender can foreclose, the lender must

notify the borrower, trustee and all interested parties of the default.

One of the main differences between a regular mortgage and a deed of trust is

the number of parties

A deed for reconveyance would be signed by the

trustee

A deed of trust conveys naked title to the

trustee

When a person signs a note with no guarantee to the person receiving it, he is said to be signing it

without recourse

Under a deed of trust, reconveyance is issued by the

trustee

Under a deed of trust the borrower is known as the ____________________.

trustor