FINANCE CHP2 Flashcards
A promissory note calling for payment of interest only during its term and that results in a balloon payment is known as a(n)
a. amortized note
b. installment note
c. negotiated note
d. straight note
d. straight note
The mortgage clause that permits the lender to declare the entire unpaid loan balance immediately due and payable on default of the borrower is a(n)
a. acceleration clause
b. defeasance clause
c. escalation clause
d. forfeiture clause
a. acceleration clause
A mortgage clause that permits the lender to call the outstanding balance due and payable should the property be sold by the borrower is a(n)
a. acceleration clause
b. alienation clause
c. balloon payment clause
d. exculpatory clause
b. alienation clause
Which document accompanies the mortgage for a home loan ?
a. abstract of title
b. contract of sale
c. deed
d. promissory note
d. promissory note
In a judicial foreclosure, the debtor can get the property back through an act of
a. confirmation
b. disintermediation
c. non-judicial foreclosure
d. redemption
d. redemption
For which type of mortgage must the borrower be a senior citizen?
a. hypothecated
b. open-ended
c. package
d. reverse
d. reverse
A budget mortgage is best defined as one that includes
a. payments covering principal, interest, taxes, and insurance
b. people with lower incomes
c. personal as well as real property
d. principal and interest payments
a. payments covering principal, interest, taxes, and insurance
A buyer finances the construction of a new house through a local bank . If money is released to the builder through the buyer at various stages of construction, this mortgage is probably a(n)
a. budget mortgage
b. construction mortgage
c. option ARM
d. package mortgage
b. construction mortgage
In a mortgage document , the borrower is known as the
a. builder.
b. mortgagee
c. mortgagor
d. trustor
c. mortgagor
Money obtained from a foreclosure sale in excess of the debt and court costs belong to the
a. court
b. debtor
c. lender
d. sheriff
b. debtor
