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28 Cards in this Set

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A buyer buys a property under an Agreement for Sale with only 10 percent down. The buyer then leaves town and abandons the property. Which of the following statements are true?

a. Seller must go through a foreclosure process
b. Buyer will forfeit his equity after a specific period of time
c. Buyer will automatically lose his equity
d. Buyer has a 9-day reinstatement period
b. Buyer will forfeit his equity after a specific time period
Which of the following intstruments contain the note and security in one document?

a. Agreement for sale
b. Exchange contract
c. Lease with first right to refuse
d. Purchase-money mortgage
a. Agreement for sale
The forfeiture period on a land contract is:

a. A reinstatement period as agreed by the parties
b. A specific statutory period of time
c. 90 days after constructive notice
d. 6 months after actual notice
b. A specific statutory period of time
A buyer buys a property under an Agreement for Sale with only 10 percent down. The buyer then leaves town and abandons the property. Which of the following statements are true?

a. Seller must go through a foreclosure process
b. Buyer will forfeit his equity after a specific period of time
c. Buyer will automatically lose his equity
d. Buyer has a 9-day reinstatement period
b. Buyer will forfeit his equity after a specific time period
Which of the following intstruments contain the note and security in one document?

a. Agreement for sale
b. Exchange contract
c. Lease with first right to refuse
d. Purchase-money mortgage
a. Agreement for sale
The forfeiture period on a land contract is:

a. A reinstatement period as agreed by the parties
b. A specific statutory period of time
c. 90 days after constructive notice
d. 6 months after actual notice
b. A specific statutory period of time
A buyer obtains a loan on a parcel of land secured by a Deed of Trust. Later the buyer moves a mobile home on the lot and defaults on the Deed of Trust. Which of the following is true?

a. Lender may foreclose on the land
b. Lender may not foreclose under the homestead act
c. Lender may foreclose on the land only
d. Lender may foreclose on the mobile home only
c. Lender may foreclose on the land only
Who benefits from a non-disturbance clause in a loan?

a. Seller of the property
b. New buyer of the property
c. Tenant leasing the property
d. Broker who sells the property
c. Tenant leasing the property
What is the primary difference between an agreement for sale and a purchase-money mortgage?

a. A purchase money mortgage contains the note and security all in one document
b. The purchase money mortgage is the evidence of the debt
c. The agreement for sale contains the note and security all in one document
d. The agreement for sale is used only when selling land
c. The agreement for sale contains the note and security all in one document
How could a lender save five months in a judicial foreclosure?

a. Waive service of process
b. File for an abandonment suit
c. Release notice of acceleration
d. Substitute the trustee
b. File for an abandonment suit
When the note and security instrument are in one document, this is best described as:

a. Purchase money mortgage
b. Wraparound
c. Land contract
d. Deed of trust
c. Land contract
When a wraparound is created, who is responsible for the underlying loans?

a. Vendee
b. Vendor
c. Trustee
d. Beneficiary
b. Vendor
How are the rights of ownership under a land contract transferred to a new buyer?

a. Assignment
b. Subordination
c. Subrogation
d. Assumption
a. Assignment
Low income loans are usually purchased by:

a. FNMA
b. GNMA
c. FHLMC
d. Federal Reserve
b. GNMA
When a mortgage banker borrows on existing loans held by the banker, this is called:

a. Discounting
b. Estoppel
c. Wraparound lending
d. Warehousing
d. Warehousing
RESPA would provide for all of the following except:

a. Good faith estimate
b. HUD booklet
c. A limit on loan points
d. Restriction on kickbacks
A. Limit on loan points
Which of the following transactions would not be subject to regulation Z?

a. Home purchase
b. Home equity loans
c. Pool loan
d. Business loan
c. Pool loan
Who is responsible to deliver the RESPA information to the buyer?

a. Broker
b. Seller
c. Lender
d. Title and Escrow
c. Lender
Which of the agencies listed below guarantees loans?

a. FHA
b. FNMA
c. GNMA
d. FHLMC
c. GNMA
RESPA mandates the lender to provide the borrower all of the following EXCEPT:

a. HUD booklet
b. Good-faith estimate
c. Estimated closing costs in three days
d. Three-day right of rescission
d. Three-day right of rescission
A three-day right-to-rescind originates from:

a. RESPA
b. Usury law
c. APR
d. Regulation Z
d. Regulation Z
A HUD book must be iven to a borrower within:

a. Three days of loan application
b. Three days after the buyer's request
c. Three days after closing
d. Three days prior to closing
a. Three days of loan application
Who has title on a land contract?

a. Vendee
b. Grantee
c. Mortgagee
d. Vendor
d. Vendor
What would discourage a buyer to take a bank wrap-around mortgage?

a. A seller with a large amount of equity
b. Effective rate of loan would be lower than the present market rate
c. Seller's loan had an alienation clause
d. The absence of an alienation clause
c. Seller's loan had an alienation clause
A property has both a first and second lien. Both are in default. Which of the following statements are true?

a. The second would be terminated if the first goes through a successfull judicial foreclosure
b. First and second must start foreclosure action
c. The second must reinstate the first
d. If the second forecloses the first is eliminated
a. The second would be terminated if the first goes through a successful judicial foreclosure
When an estoppel certificate is used by a lender, he is primarily working in the:

a. Primary market
b. Secondary market
c. Tertiary market
d. Open market
b. Secondary market
Which of the following would not apply to a mortgage?

a. Alienation clause
b. Note
c. Deed recordation
d. Secondary market
c. Deed recordation
What would violate truth in lending Reg Z?

a. Home for rent $200 month
b. Seller will carry with 20% down
c. Assumable loan
d. Monthly payment PITI $1425 month
d. Monthly payment PITI $1425 month