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Questions and Answers
What type of foreclosure involves a legal action to recover the amount owed on a defaulted mortgage?
What type of foreclosure involves a legal action to recover the amount owed on a defaulted mortgage?
In a real estate transaction, what type of loan is secured by personal property?
In a real estate transaction, what type of loan is secured by personal property?
What type of financing arrangement allows a vendor to hold legal title to property until payment is complete?
What type of financing arrangement allows a vendor to hold legal title to property until payment is complete?
Which type of loan is typically temporary and used during the construction of a property?
Which type of loan is typically temporary and used during the construction of a property?
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What is the purpose of a purchase money mortgage?
What is the purpose of a purchase money mortgage?
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What document is used to hypothecate title to personal property?
What document is used to hypothecate title to personal property?
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Which action could create a tight money market by a lender?
Which action could create a tight money market by a lender?
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A purchase money first mortgage will take priority over which type of lien?
A purchase money first mortgage will take priority over which type of lien?
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Which of the following loan types only pays interest during its term?
Which of the following loan types only pays interest during its term?
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Which loan names are synonymous?
Which loan names are synonymous?
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What is the best description of a land contract?
What is the best description of a land contract?
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What does a provision requiring the lender’s approval before a loan can be assumed indicate?
What does a provision requiring the lender’s approval before a loan can be assumed indicate?
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Which fee is paid by a borrower in advance when they intend to pay off the debt early?
Which fee is paid by a borrower in advance when they intend to pay off the debt early?
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What will a subordinate clause in a deed of trust allow the trustor to do?
What will a subordinate clause in a deed of trust allow the trustor to do?
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What does a statement obtained from a property owner regarding a promissory note provide?
What does a statement obtained from a property owner regarding a promissory note provide?
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Study Notes
Chapter 9 Quiz - Key Concepts
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Hypothecation of Personal Property: A security agreement is used to hypothecate personal property, not a bill of sale, chattel mortgage, or certificate of clearance.
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Federal Reserve Actions for Tight Money Market: The Federal Reserve can create a tight money market by raising the discount rate and selling bonds.
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Purchase Money First Mortgage Priority: A purchase money first mortgage takes priority over all liens against a property as of the sale date, and any liens recorded later.
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Interest Rate Above Legal Limit: An interest rate greater than the legally allowed maximum is considered usury.
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Deed of Reconveyance: The trustee executes a deed of reconveyance in a deed of trust.
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"Calling" a Note: When a lender "calls" a note, it demands payment of delinquent loan installments.
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Interest-Only Note Types: A straight note is a type of note where only the interest is paid during the term, not amortization or installment payments.
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Loan Types: Interim (construction loan) and takeout loans are synonymous.
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Prepayment Penalties: A prepayment penalty is a fee paid by a borrower who pays part of their loan debt in advance.
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Land Contract as Substitute: A land contract can act as a substitute for a note and deed of trust, it's a three party instrument.
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Subordination Clause in Deed of Trust: A subordination clause in a deed of trust permits future loan priority over an existing loan.
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Mortgage Lender Approval for Assumption: A provision requiring a lender's approval to assume a mortgage is, under certain conditions, considered valid.
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Statement of a Property Owner about Note: An offset statement details the loan's principal balance, interest rate, and payment schedule, regarding a promissory note.
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Trustor Default Remedies: The most common remedy for trustor defaults is a trustee's sale.
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Purchase Money Mortgage: A purchase money mortgage is a loan used to buy real property—the lender will hold the property as collateral until repaid.
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Deed of Trust Foreclosure Advantages: Deed of trust foreclosures offer an advantage over judicial foreclosures by significantly quicker sale times, avoiding the lengthy periods associated with typical judicial processes before the property can be sold.
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Description
This quiz covers essential concepts from Chapter 9, focusing on topics such as hypothecation of personal property, Federal Reserve actions, and mortgage priorities. Test your knowledge on key financial terms and their implications in personal and real estate finance.
