Chapter 12 - Quiz Flashcards
What does an Estoppel Certificate show?
The Abstract of Title
The current balance of the loan when a lender sells a note to another lender
The Guaranteed ROI
The date the loan will be paid off
The current balance of the loan when a lender sells a note to another lender
What is the term for a mortgage that is junior to another mortgage?
Wraparound Mortgage
Equitable Mortgage
First Mortgage
A Subordinate Mortgage
A Subordinate Mortgage
What does a defeasance clause in a mortgage provide for?
Subordination
Penalties if the mortgage is paid off early
Release of the indebtedness once the loan is paid off
Alienation
Release of the indebtedness once the loan is paid off
A defeasance clause in a mortgage releases the indebtedness once the loan has been paid off.
An instrument confirming one person owing another money is called?
A rescindment
A note
A mortgage
A deed
A note
A note is an instrument confirming money owed by one party to another.
Which of the following best describes Equity in a property?
The Property Tax Assessment Value
The value of the outstanding mortgage
The price at which it was purchased before the last sale
The value over and above the outstanding mortgage balance(s)
The value over and above the outstanding mortgage balance(s)
What is the annual interest rate on a loan where interest is paid at $500 per month on a $50,000 loan?
12% (Percent)
5% (Percent)
10% (percent)
0.12% (Percent)
12% (Percent)
500x12 = 6,000 per annum then divide by 50,000 = .12; show as a percentage = 12%.
What is a deficiency judgement?
The judgement a lender seeks when proceeds from a foreclosure sale do not cover the amount owed to the lender
Notification of not qualifying for an FHA loan
A Home Inspector’s Report
Notification of failure to complete post-licensing course
The judgement a lender seeks when proceeds from a foreclosure sale do not cover the amount owed to the lender
What are Discount Points?
Reduction in Listing Broker Sales Commission payments
Income Tax expense categories
A form of pre-paid interest used to obtain a lower mortgage interest rate
A sliding scale for listing price reduction over a period of time
A form of pre-paid interest used to obtain a lower mortgage interest rate
At a foreclosure sale there was money left over after the debts were paid who got it?
The Mortgagor
The Mortgagee
Grantor
The Sheriff
The Mortgagor
What Title does the seller retain until the loan is paid in full in an installment land contract?
Tenants in Common
Equitable Mortgage
Legal
Joint Tenancy
Legal
The seller retains legal title in an installment land contract until the agreed price is paid in full.
