Mortgages

Question 1

Real Estate Settlement Procedures Act (RESPA) in 1974 to

Answer 1

provide home buyers with more information about settlement procedures and to protect them from high settlement fees

Question 2

RESPA applies to

Answer 2

1) all federally related mortgage loans

2) nearly all first mortgage loans

Question 3

General purpose of Real Estate Settlement Procedures Act (RESPA)

Answer 3

is to regulate mortgage lenders

Question 4

The porpose of the Federal Trade Commission Act is to

Answer 4

prevent unfair methods of competition and unfair or deceptive practices

Question 5

Federal Trade Commission Act

Answer 5

applies to mortgage lenders but does not regulate them

Question 6

If a buyer takes a mortgage “Subject to”

Answer 6

the buyer accepts no liability for the mortgage and the seller is still primarily liable

Question 7

To have an enforceable mortgage it

Answer 7

1) Must be in writing

2) Must include description of property and debt

Question 8

A mortgagor has the right to redeem the mortgage property

Answer 8

after default and before a judicial sale by payment of all principal and interest on the note

Question 9

Most states allow a mortgagor (usually 1 year after the foreclosure sale)

Answer 9

to reinstate the debt and mortgage by paying purchase price plus interest on the note to the purchaser at sale

Question 10

The Right of Redemption will terminate

Answer 10

at the time of foreclosure unless a statutory right of redemption has been enacted.