Chapter 12 Flashcards
Within ________ after recording the Notice of Default (NOD), the trustee is required to send a copy of the NOD by registered or certified mail to holders of a recorded interest in the secured property.
a. one week
b. one month
c. one year
d. two years
B
At least ________the date selected by a trustee to hold a trustee’s sale, the trustee must send two copies of the notice of trustee’s sale (NOTS) to each party the trustee previously sent a notice of default (NOD).
a. 20 calendar days before
b. 6 business days before
c. three months before
d. 30 calendar days before
A
A trustee’s sale is considered final and complete:
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
A trust deed holder may foreclose on a property which serves as the security for a note by:
a. judicial foreclosure under mortgage law.
b. nonjudicial foreclosure under the power-of-sale provision in the trust deed.
c. Either a. or b.
d. Neither a. nor b.
C
A ________ is issued to the successful bidder on the completion of a judicial sale.
a. certificate of sale
b. Notice of Trustee’s Sale (NOTS)
c. fair value hearing certificate
d. None of the above.
A
Mortgage debt under California’s anti-deficiency statutes is classified as:
a. recourse
b. nonrecourse
c. Both a. and b.
d. Neither a. nor b.
C
Anti-deficiency protection has also been extended to homeowners who negotiate a __________, in which the lender accepts the net proceeds at closing in full satisfaction by discounting the mortgage debt.
a. balloon payment
b. short payoff
c. negative amortizing loan
d. land sales contract
B
_______________ is an example of a submerged subsidy as it takes the form of a rebate.
a. A short sale
b. The mortgage interest deduction (MID)
c. A referral fee
d. A deed-in-lieu of foreclosure
B
To qualify home improvement loans for interest deductions, the new improvements must be substantial. Improvements are substantial if they:
a. add to the property’s market value.
b. prolong the property’s useful life.
c. adapt the property to residential use.
d. All of the above.
D
Numerous advantages are available to sellers of ________ who couple the sale with the purchase of a replacement property.
a. §1031 like-kind properties
b. §1015 similar properties
c. §1085 divergent homes
d. None of the above.
A
