Default, Foreclosure & the Title Insurer Flashcards
Following the beginning of the Great Recession in the fall of 2007, REOs entered the market
(a) At a slow pace due to government moratoriums
(b) At a slow pace because of government foreclosure-avoidance programs
(c) Both a and b
(d) Neither a nor b
(c) Both a and b
Following the beginning of the Great Recession in the fall of 2007, REOs entered the market at a slower pace because of government moratoriums and foreclosure-avoidance programs, some now expired, that required mortgage lenders and banks to offer homeowners in default some alternatives to foreclosure.
Many lenders have foreclosure alternative programs
(a) Based on Making Home Affordable programs
(b) That do not terminate
(c) That do not terminate
(d) Neither a nor b
(c) Both a and b
A short sale occurs
(a) When a seller requires a fast closing
(b) When a seller requires a fast closing
(c) When a seller agrees to “walk away” from a property subject to a loan
(d) When a seller’s lender agrees to accept less for the loan payoff than the total amount due
(d) When a seller’s lender agrees to accept less for the loan payoff than the total amount due
Requiring a seller in a short sale to remain liable for a deficiency balance as a condition of the lender agreeing to the short sale in California is
(a) Is prohibited for all one-to-four unit residential properties
(b) Is prohibited for all residential properties
(c) Is prohibited for all properties
(d) Is prohibited only for investment properties
(a) Is prohibited for all one-to-four unit residential properties
A lender that is a “regulated lender” is defined as a financial institution
(a) That does business with the government
(b) That accepts and holds monetary deposits from customers
(c) That is subject to the regulations of the SEC
(d) All of the above
(b) That accepts and holds monetary deposits from customers
A lender having acquired a property through a judicial foreclosure and then selling it to another party that paid less than the full amount of the debt owed by the foreclosed-upon borrower may be entitled to
(a) A deficit judgment
(b) A deficiency judgment
(c) A mortgagee’s judgment
(d) A beneficiary’s judgment
(b) A deficiency judgment
The principal difference between foreclosing under a mortgage and under a deed of trust is
(a) The deed of trust does not require the lender to seek court action to foreclose
(b) The mortgage does not require the lender to seek court action to foreclose
(c) The mortgage has a provision by which by which the borrower conveys bare legal title
(d) None of the above
(a) The deed of trust does not require the lender to seek court action to foreclose
The steps involved in the foreclosure process under a deed of trust include
(a) Notice of Foreclosure, Notice of Sale, Trustee’s Sale
(b) Notice of Foreclosure, Notice of Sale, Trustor’s Sale
(c) Notice of Default, Notice of Sale, Beneficiary’s Sale
(d) Notice of Default, Notice of Sale, Trustee’s Sale
(d) Notice of Default, Notice of Sale, Trustee’s Sale
The notice of sale (NOS), which has a minimum term of 21 days
(a) May not be filed before the end of the three-month NOD term
(b) May not be filed before 85 days after filing the NOD and the sale may take place the next day
(c) May not be filed before the end of the 90-day NOD term
(d) May be filed 85 days after the NOD has been filed however the sale may not take place before three months and 21 days after filing the NOD
(d) May be filed 85 days after the NOD has been filed however the sale may not take place before three months and 21 days after filing the NOD
The Making Home Affordable Program, part of the Helping Families Save Their Homes Act of 2009, continues to offer assistance to homeowners in default through two other plans known as
(a) HARP and HAMP.
(b) HELP and HOPE.
(c) HARP and HOME.
(d) HELP and HAMP.
(a) HARP and HAMP.
The short sale occurs at escrow closing when the seller’s lender agrees to
(a) a short escrow.
(b) accept less for the loan payoff than what is due.
(c) both a and b.
(d) neither a nor b.
(b) accept less for the loan payoff than what is due.
California foreclosure law under the California foreclosure time line provision applies to
(a) owner-occupied homes having one to four units.
(b) both owner-occupied and investment homes having one to four units.
(c) all residential properties, regardless of number of units.
(d) all real estate properties.
(a) owner-occupied homes having one to four units.
Regulated lending institutions include
(a) national banks, state-chartered banks, federal savings and loans, and federal credit unions.
(b) only national banks and federal savings and loans.
(c) only national banks, federal savings and loans, and federal credit unions.
(d) only those regulated by the U.S. Treasury.
(a) national banks, state-chartered banks, federal savings and loans, and federal credit unions.
Reserves of regulated lenders are required in a specific percentage of the outstanding loan balance of
(a) performing loans.
(b) nonperforming loans.
(c) REO properties.
(d) all of these.
(d) all of these.
The deed in lieu of foreclosure
(a) does not immediately release the borrower from most of the debt.
(b) requires a court filing and public disclosure.
(c) requires the indebtedness to be secured by the real estate transferred.
(d) is likely to impact the borrower’s credit as severely as a foreclosure.
(c) requires the indebtedness to be secured by the real estate transferred.
