1. If the lender with a legitimate reason (like the borrower does not pay for insurance pay taxes) calls all sums due and payable, this is called
2. Bancrofting the loan
3. Acceleration
4. Escalation
5. Subordination
6. Foreclosure is a procedure designed to
7. Enable a lender to acquire the value of the pledged collateral
8. Terminate a borrower's interest in the property
9. Both A. and B are true
10. Neither A. or B are true
11. The most significant difference between financing through the use of a mortgage or trust deed is:
12. The type of property used as security
13. The length of time for repayment of the loan
14. The time period necessary to complete foreclosure
15. A trust deed cannot be foreclosed
16. The most common procedure for foreclosing a trust deed is called
17. Strict foreclosure
18. Foreclosure by entry and possession
19. Foreclosure by advertisement and sale
20. Foreclosure by writ of entry
21. True/False...A purchase money mortgage is an instrument given to the seller from the buyer to finance the purchase of a single family residence
22. True
23. False
24. The right of the borrower to pay to the lender the amount of the back payments which were not paid plus some costs and fees associated with the advertisement and sale process is called the
25. Right of redemption
26. Right of subordination payment
27. Right of lis pendens
28. Right of reinstatement
29. When a land sale contract is used the vendee has
30. Legal title
31. Equitable title
32. Mens rea title
33. Naked title
34. When a land sale contract is used and the borrower fails to pay, the vendor may have a right to a "non-judicial" method of foreclosure that eliminates the borrower's right in the property, the vendor keeps all payments made; the vendor is exercising which of the following remedies?
35. Strict foreclosure
36. Judicial foreclosure
37. Specific performance
38. Forfeiture
39. A mortgagor's entitlement to reclaim his/her property after default is called
40. The right of redemption
41. The right of reinstatement
42. The right of possession
43. The right to assign equity
44. When a grantee takes title to real property "subject to" an existing mortgage, what is the grantee's (buyer's) maximum risk?
45. Loss of equity
46. possibility of a deficiency judgment
47. no risk because the grantee did not agree to "assume and pay" the mortgage
48. the threat of specific performance
49. Bob and Betty purchased a piece of land for $75,000. They put $20,000 down and the seller carried back a note/mortgage for $55,000 for 10 years. Bob and Betty anticipate borrowing money to be secured by the land and a house they plan to build in 2 years; and, they do not plan to pay off the loan with the seller before it is due in 10 years. The absence of which clause in their loan with the seller could be a problem when Bob and Betty try to get financing (which will require a 1st lien priority position) to build the home?
50. subordination
51. subrogation
52. alienation
53. Acceleration
54. Henry and Henrietta offer to buy Mike's home for $210,000. Mike owes Friendly Bank $160,000. Henry and Henrietta agree to pay Mike $50,000 and "assume and agree to pay the Friendly loan. If Henry and Henrietta do not make their payments they risk
55. nothing because they didn't borrow the money from Friendly Bank
56. losing only their equity in the house
57. losing their equity in the house and the possibility of being personally liable for the Friendly loan
58. of being personally liable for the debt to Friendly Bank, but they do not risk losing their equity
59. Friendly Bank loaned Willie $150,000 to purchase a house. Friendly Bank would best be characterized as a
60. secondary mortgage market participant
61. tertiary mortgage market participant
62. primary mortgage market participant
63. novation specialist market participant
64. A subordination clause in a mortgage or trust deed
65. allows readjustment and alteration of the terms as stated in the trust deed
66. puts the loan in an inferior position in regard to other liens and encumbrances against the property
67. permits the obligation to be paid off prior to the end of the anticipated term.
68. prohibits the grantor from obtaining another loan before the original loan is paid in full
69. The primary purpose of recording documents (such as mortgages, trust deeds, and land sale contracts) is to
70. make the document "legal" and "valid"
71. give notice to the public of the existence of the recorded document
72. absolutely prevent another document from being recorded
73. validate signatures
74. Generally priority of a mortgage, trust deed or contract is established by
75. the date the mortgage, trust deed or contract is signed
76. the date the mortgage, trust deed or contract is notarized
77. the date the mortgage, trust deed or contract is acknowledged
78. the date the mortgage, trust deed or contract is recorded
79. When Able sues Nick for $10,000 and wins, the court will enter a
80. judgment which will become a lien against Nick's property
81. restraining order prohibiting Nick from spending any money until the $10,l000 is paid
82. automatically put Nick in jail
83. issue an arrest warrant for Nick