Chapter 12 Flashcards
To satisfy an unpaid mortgage debt on a default, the mortgage holder first forecloses on the real estate before attempting any other method of collection, called:
a. exhausting the security.
b. substituting the security.
c. committing waste.
d. None of the above.
A
The California legislature enacted _______________ laws to set a limitation on the amount recoverable as a money judgment for debts secured by real estate.
a. usury
b. anti-deficiency
c. due-on clause
d. None of the above.
B
Mortgage holders intending to minimize their loss through pre-foreclosure workouts accept the net proceeds from an owner’s sale of the secured property in exchange for cancelling the unpaid mortgage balance, called a:
a. short payoff.
b. short sale.
c. Both a. and b.
d. Neither a. nor b.
C
When a deficiency judgment is awarded to the mortgage holder, the property owner has the right to _______________ the property within one year after the judicial foreclosure sale by paying the amount of the successful bid, plus interest.
a. reinstate
b. redeem
c. foreclose
d. satisfy
B
Anti-deficiency rules no longer apply to a carryback debt when the debt to the seller becomes secured by real estate other than the real estate sold, called:
a. substitution of security.
b. exhaustion of the security.
c. waiver of the security.
d. subordination of the security.
A
A letter of credit is unenforceable if:
a. the mortgage debt is subject to an anti-deficiency defense for funding the purchase of an owner-occupied, one-to-four unit residential property.
b. it is issued to a mortgage holder to cover a future default on the mortgage debt.
c. Both a. and b.
d. Neither a. nor b.
C
Trust deeds securing a debt obligation contain a boilerplate provision authorizing mortgage holders to call all amounts remaining unpaid due and payable on a material default under the trust deed, called a(n):
a. power-of-sale provision.
b. put option.
c. future advances provision.
d. acceleration clause.
D
After a Notice of Default (NOD) is recorded, an owner may bring current any monetary or curable default stated in the NOD prior to five business days before the trustee’s sale, called the:
a. redemption period.
b. reinstatement period.
c. auction timeframe.
d. sheriff’s sale window.
B
The trustee needs to begin advertising and post a Notice of Trustee’s Sale (NOTS) at least:
a. ten days after the Notice of Default (NOD) is delivered.
b. four months and 15 days prior to the date of the sale.
c. 30 days before the date of the sale.
d. 20 days before the date of the sale.
D
When an owner fails to meet their obligations regarding the care, use and maintenance of the secured real estate, the owner is in default under the _______________ in the trust deed.
a. debt obligation
b. due-on clause
c. waste provision
d. All of the above.
C
