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10 Cards in this Set
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- Back
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1. The __________ contained in a trust deed authorizes the trustee to initiate a non-judicial foreclosure sale of the property on a declaration of default and instructions to foreclose from the beneficiary. pg 441 a. liquidated damages clause b. arbitration clause c. indemnification provision d. power-of-sale provision |
d. power-of-sale provision |
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2. Prior to completion of the trustee’s sale, an owner may ________ by paying all sums due under the note and trust deed and reimbursing the lender’s costs of foreclosure. pg 444 a. redeem property in foreclosure b. subordinate the lender’s interest c. initiate foreclosure d. hypothecate the note |
a. redeem property in foreclosure |
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3. Before recording a Notice of Default (NOD) on a trust deed securing a purchase-assist mortgage on a borrower’s principal residence, a mortgage holder needs to: pg 451 a. contact the county sheriff to notify them of the imminent sale. b. offer to modify the terms of the mortgage or temporarily suspend collection of mortgage payments. c. record and post a Notice of Trustee’s Sale (NOTS). d. conduct a pre-foreclosure workout with the owner. |
d. conduct a pre-foreclosure workout with the owner. |
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4. Within ________ after recording a Notice of Default (NOD), the trustee sends a copy of the NOD by registered or certified mail to holders of a recorded interest in the secured property. pg 454 a. one week b. one month c. one year d. two years |
b. one month |
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5. At least ________the date selected by a trustee to hold a trustee’s sale, the trustee sends two copies of the Notice of Trustee’s Sale (NOTS) to each party the trustee previously sent a Notice of Default (NOD). pg 455 a. 20 calendar days before b. 6 business days before c. three months before d. 30 calendar days before |
a. 20 calendar days before |
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6. A trustee’s sale is considered final and complete: pg 456 a. when a beneficiary makes a bid. b. when the trustee records a Notice of Default (NOD). c. on the trustee’s acceptance of the last and highest bid. d. when the lender signs the certificate of sale. |
c. on the trustee’s acceptance of the last and highest bid. |
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7. A(n) _________ is the court-ordered sale by public auction of a secured property, lasting from eight months to multiple years before it is completed. pg 460 a. judicial foreclosure b. nonjudicial foreclosure c. trustee’s sale d. power-of-sale foreclosure |
a. judicial foreclosure |
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8. A(n) ________ is issued to the successful bidder on the completion of a judicial sale. pg 463 a. certificate of sale b. Notice of Trustee’s Sale (NOTS) c. fair value hearing certificate d. Advance Fee Disclosure |
a. certificate of sale |
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9. The ______________ is an itemized deduction for income tax reporting allowing homeowners to deduct interest and related charges they pay on a mortgage encumbering their primary or second homes. pg 472 a. alternative minimum tax (AMT) b. mortgage interest deduction (MID) c. mortgage cramdown d. short sale proceeds |
b. mortgage interest deduction (MID) |
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10. A ______________ is an individual’s home where the homeowner’s immediate family resides a majority of the year, is close to the homeowner’s place of employment and banks which handle the homeowner’s accounts. pg 475 a. recreational vehicle b. second home c. vacation property d. principal residence |
d. principal residence |
