Chapter 7 Flashcards
When the seller carries back a mortgage on the sale of property, their ownership interest is conveyed in exchange for a mortgage holder’s lien on title to the property, called a(n):
a. tenancy-in-common.
b. mechanic’s lien.
c. security interest.
d. right of first refusal.
C
Foreclosure cost calculations are made by an agent and reviewed with a seller who is considering an installment sale:
a. when accepting the listing.
b. when presenting an offer or counteroffer.
c. Both a. and b.
d. Neither a. nor b.
C
If a wiped-out owner refuses to vacate the property on expiration of the three-day notice, the carryback mortgage holder proceeds with a(n):
a. reverse mortgage.
b. bankruptcy petition.
c. unlawful detainer (UD) action.
d. None of the above.
C
When a tenant is in possession of a residential unit at the time of a foreclosure sale, they are given a(n) _______________ if the carryback mortgage holder (as the owner-by-foreclosure) intends to force the tenant to vacate.
a. 90-day notice to quit due to foreclosure
b. 60-day notice to quit due to foreclosure
c. 30-day notice to quit due to foreclosure
d. 15-day notice to quit due to foreclosure
A
For the seller’s agent to properly disclose the separate financial, tax and risk-of-loss aspects to a seller, a(n) _______________ needs to be attached to any purchase agreement which calls for a carryback mortgage.
a. agency law disclosure
b. carryback disclosure statement
c. conflict of interest disclosure
d. None of the above.
B
To investigate an income-producing property’s ability to carry its debt service, the property’s income and expenses are analyzed by using the:
a. profit and loss statement.
b. Annual Property Operating Data Sheet (APOD).
c. LLC Investment Circular.
d. balance sheet.
B
A buyer’s net worth is the total value of their assets minus their total debt obligations or liabilities, and is the bottom line shown on the financial statement entitled the:
a. balance sheet.
b. agreement to hypothecate.
c. operating agreement.
d. net sheet.
A
A(n) _______________ occurs when the balance on an all-inclusive trust deed (AITD) sinks below the balance on a wrapped loan.
a. crossover
b. switch
c. inverse order of alienation
d. negative gain
A
Two types of all-inclusive trust deeds (AITDs) exist, including:
a. equity payoff and earnings payoff.
b. full payoff and interest payoff.
c. equity payoff and full payoff.
d. interest payoff and non-payoff.
C
A(n) _______________, used to confirm the terms of the underlying mortgage are as represented by the seller, is a document issued by a mortgage holder noting future payment schedules, interest rates and balances on a mortgage.
a. Annual Property Operating Data Sheet (APOD)
b. all-inclusive trust deed (AITD)
c. wraparound security device
d. beneficiary statement
D
