Quiz Ch. 62-67

Question 1

A ___________ imposes an additional charge if a mortgage payment is not received by the lender when due or within a grace period.

Answer 1

late charge provision

Question 2

_________ is the minimum grace period allowed for a private lender secured by an owner-occupied single family residence (SFR), even if the homeowner agrees to a shorter grace period, or no grace period is agreed to.

Answer 2

Ten days

Question 3

An owner of real estate who wants to pay off principal on a debt before it is due may be levied an additional charge by the lender, called a:

Answer 3

prepayment penalty.

Question 4

A _______ is any final payment on a note which is an amount greater than twice the amount of any one of the six regularly scheduled preceding payments.

Answer 4

balloon payment

Question 5

Notice of a final/balloon payment needs to be given to the buyer or current owner ________ before its due date.

Answer 5

90 days

Question 6

The ______ is the preferential method used to impose a lien on real estate.

Answer 6

trust deed

Question 7

The ________, such as a lender or carryback seller, is the entity entitled to the perormance of the promised activity referenceed in the trust deed as the purpose for obtaining the security.

Answer 7

beneficiary

Question 8

When the lender enteres into an agreement with both the buyer and seller for the buyer’s assumption of the loan and release of the seller’s liability, this is known as a:

Answer 8

novation.

Question 9

The occurance of an event which triggers due-on enforcement automatically allows the lender to call the loan, also known as:

Answer 9

acceleration.

Question 10

The due-on clause is triggered not only by a transfer using a standard grant deed, but by a lease with a term over:

Answer 10

three years.