Financing Documents
If the payment amount is between 30 and 50%, proceedings can start after?
120 Days
If the payment amount is between 20 and 30%, proceedings can start after?
60 Days
Elaina and Allen just purchased a home using a deed of trust. Which of the following is most likely true about their home loan?
A trustee will hold title until the loan is paid.
Which statement best describes an amortized loan?
Debt that is paid off by making periodic payments consisting of interest and principal
Theo is a buyer who's contemplating a land contract. Why might he choose this route over traditional financing?
He doesn't qualify for traditional financing.
A ______ is a contractual agreement in which the buyer pays the seller the purchase price over time in a series of installments until the contract has been paid in full.
Land contract With a land contract, the buyer will contract to pay the seller the purchase price over time in a series of installments. As the buyer pays these installments, the buyer begins to pay off the sales price of the property.
Who or what is the mortgagee?
Lender The lender has the mortgage on the property, so the lender is the mortgagee.
What information is listed on the promissory note?
Loan amount and schedule of repayment
Who or what entity has legal title to a financed property in a lien theory state?
The borrower The borrower is the legal owner and has the right to possess and control the property. The lender has the right (after a loan default) to take possession of the property through foreclosure.
Who holds the promissory note when a deed of trust is used as a security instrument?
The lender
When a mortgage is used as a security instrument, who holds the mortgage and the promissory note?
The lender holds the mortgage and the note.
When a mortgage is used as a security instrument, who holds the mortgage and the promissory note?
The lender holds the mortgage and the note. The note and mortgage are the lender's leverage to foreclose in the event of default.
Olivia took out a 15-year loan secured with a deed of trust. She worked two jobs in order to pay the loan back and finally made her last payment this month. What happens now?
The lender tells the trustee to release the title to Olivia. Because the property deed was held by a third-party trustee instead of the lender, the trustee grants a reconveyance deed to Olivia, which grants her the title.
Who holds the promissory note while it's being repaid?
The payee The lender is the payee who holds the note while it's being repaid. If the note is transferred, the new owner becomes the payee and note holder.
What is the trustee's role when a deed of trust is used to secure property for a loan?
To hold legal title to the property on behalf of the beneficiary until the loan is repaid
In which of these scenarios is an Arizona property seller allowed to initiate forfeiture after borrower default?
When the transaction uses an agreement for sale. The forfeiture process is used when the seller and buyer enter into an agreement for sale, where the seller holds the property title, and the buyer has the right of possession while the loan is repaid.
If the payment amount is more than 50%, proceedings can start after?
nine months.
Charles is selling his property to Seth. Charles is financing part of the transaction for Seth, who will make payments to Charles while Charles retains the property title. What is this an example of?
A land contract
Which statement describes hypothecation?
The process of pledging property as collateral for a loan Using a property as security for a mortgage is known as hypothecation. If it helps, think, "Hypothetically, if I didn't pay my mortgage, you could take my house."
If the buyer has paid less than 20% of the loan total, the seller can start forfeiture proceedings after?
the payment is 30 days late.