section 4 ch 1
If an individual defaults on a $100,000 mortgage and only $95,000 is received by the lender as a result of a court-ordered sale (foreclosure), which of the following is true? Select one: a. The lender must file a $5,000 judgment against the person who purchased the property. b. The lender may be entitled to a $5,000 judgment against the original borrower. c. The lender cannot recover the $5,000. d. None of the above.
The lender may be entitled to a $5,000 judgment against the original borrower.
When a new mortgage loan is made, which of the following documents must be recorded? Select one: a. The promissory note. b. The mortgage. c. Both the promissory note and the mortgage. d. Neither the promissory note nor the mortgage. Feedback
The mortgage
The certificate that shows the unpaid balance of a mortgage and the amount of unpaid interest associated with that debt is referred to as: a. A waiver. b. An estoppel. c. An acknowledgment. d. A satisfaction.
an estoppel
The clause in a security instrument that prevents the assumption of a loan is known as? Select one: a. acceleration. b. alienation. c. defeasance. d. release. Feedback
b. alienation.
Which of the following persons executes a trust deed? a. Trustee. b. Trustor. c. Mortgagee. d. Beneficiary. Feedback
b. trustor
A mortgagor cannot be charged a penalty if he or she pays off the mortgage early. Select one: a. True b. False
False
An agreement to waive prior rights in favor of another is? Select one: a. Subordination. b. Subrogation. c. Subornation. d. Subjugation. Feedback
Subordination.
A lis pendens would be filed: a. In a judicial foreclosure. b. In a trustee's sale. c. In both a judicial foreclosure and a trustee's sale. d. In neither a judicial foreclosure nor a trustee's sale.
a. In a judicial foreclosure.
In a typical loan transaction, the mortgagee is the? a. Lender. b. Borrower. c. Appraiser. d. Closing agent.
a. Lender.
When a buyer obtains a loan for the purchase of property, the lender will require: a. Mortgage and a promissory note. b. Deed of trust and a hypothecation note. c. Promissory note and a purchase agreement. d. Deed of trust note and a contract for sale. Feedback
a. Mortgage and a promissory note.
Which of the following instruments shows evidence of a debt? Select one: a. Note b. Option c. Contract d. Abstract
a. Note
A couple buys a furnished home by assuming the existing loan. Which of the following papers would the settlement attorney NOT have to prepare? a. Note and mortgage. b. Bill of sale. c. Assumption papers. d. Warranty deed.
a. Note and mortgage.
A husband and wife own property with a mortgage payment due on the first of each month. They are thirty days late in making a payment and receive notice from the lender to make payment within ten days. If they fail to make the payment the entire loan balance becomes payable immediately. Which clause in the mortgage allows the lender the right to take such action? Select one: a. Alienation clause b. Acceleration clause c. Estoppel clause d. Forfeiture clause
b. Acceleration clause
A mortgagee's title insurance provides protection to which of the following? a. Borrower. b. Lender. c. Trustee. d. Seller. Feedback
b. Lender.
All mortgages are? Select one: a. Due on sale. b. Liens. c. Recorded. d. None of these choices.
b. Liens.
Which clause in a mortgage loan would allow the lender to foreclose to recover the entire remaining loan balance if the borrower defaults on the loan? Select one: a. The defeasance clause. b. The subordination clause. c. The acceleration clause d. The alienation clause.
c. The acceleration clause
Parties to a deed of trust are? Select one: a. Mortgagor/mortgagee/broker. b. Borrower/lender/broker. c. Trustor/beneficiary/trustee. d. Mortgagor/trustee/mortgagee.
c. Trustor/beneficiary/trustee.
A seller sells her home to a buyer who assumes her existing loan. If the buyer defaults, who is responsible for the balance of the debt? Select one: a. Seller only b. Buyer only c. Seller and buyer jointly d. Seller and buyer jointly and severally
d. Seller and buyer jointly and severally
Who holds the security for a mortgage loan? Select one: a. The grantor b. The grantee c. The mortgagor d. The mortgagee
d. The mortgagee
A trustee on a deed of trust pays the real estate taxes and insurance on the property. a. True b. False
false
