Chapter 21

Question 1

This is a deal between parties that are unaffiliated “ you are negotiating for your interest. I’m negotiating for my interest. Here’s where we have reached in the middle.”

Answer 1

Arms length transaction

Question 2

A claim made by lender win the proceeds from a foreclosure sale or a short sale or not enough to cover the remaining debt on a mortgage

Answer 2

Deficiency claim

Question 3

A change to the terms of a loan that makes it easier for the borrower to pay

Answer 3

Loan modification

Question 4

Amount owed on a property that is more than the property is worth the only way to sell is to persuade the lender to accept a reduced payoff amount

Answer 4

Short sale

Question 5

This disclosure should be given to a buyer or seller limited agency deal in a short sale situation

Answer 5

Short sale disclosure

Question 6

When it comes to a short sale, transaction real estate professional should never do what

Answer 6

Give legal advice to their client
Give tax advice to their clients
Attempt to enter into limited agency

Question 7

Regarding short sales real estate professionals need to understand that

Answer 7

Short sales may take a very long time
Obtaining third-party approval can be time-consuming
Buyers may become impatient and back out of transaction

Question 8

Addendum to the exclusive right to sell agency agreement for short sales disclosures to the seller state

Answer 8

That they have previously seen and signed the short sale disclosure form
That they are authorizing their agent to disclose all advertising on the MLS that this is a short sale transaction
That a short sale may have a negative impact on the sellers credit

Question 9

If a seller would like to accept a backup offer on a short sale transaction a real estate professional should use

Answer 9

A blank addendum
The secondary back up offer contract for short sale form

Question 10

A short sale is defined as

Answer 10

A transaction in which the purchase price is less than the amount owed on outstanding lane on the subject property

Question 11

The document that defined what a short sale is actually defined in

Answer 11

The short sale disclosure and the short sale addendum

Question 12

What is the purpose of the short cell addendum to the REPC?

Answer 12

Acknowledge that this transaction is a short sale
Define the role of a third-party and short sale transactions and define third-party approval
Specified contract, deadlines pursuant to third-party approval

Question 13

The short sale disclosure should be signed by

Answer 13

Buyer or seller clients

Question 14

The purpose of the short sale disclosure is to

Answer 14

Provide disclosure to all parties
Define what a short sale is and at the right of the parties to cancel
Define the role of a third-party in a short sale transaction