Real Estate Principles: Q13/Chp 68-72

Question 1

1) The \_\_\_\_\_\_\_ contained in a trust deed authorizes the trustee to initiate a non-judicial foreclosure sale of the property on a declaration of default and instructions to forclose from the beneficiary.
A) liquidated damages clause
B) arbitration clause
C) indemnification provision
D) power-of-sale provision

Answer 1

D) power-of-sale provision

Question 2

2) Prior to completion of the trustee's sale, an owner may \_\_\_\_\_\_\_\_ by paying all sums due under the note and trust deed and reimbursing the lender's costs of foreclosure.
A) redeem property in foreclosure
B) subordinate the lender's interest
C) initiate foreclosure
D) hypothecate the note

Answer 2

A) redeem property in foreclosure

Question 3

3) Before recording a notice of default (NOD) on a trust deed securing a purchase assist mortgage on a borrower’s principal residence, a mortgage holder needs to:
A) contact the county sheriff to notify them of the eminent sale.
B) offered to modify the terms of the mortgage or temporarily suspend collection of mortgage payments.
C) Record and post a notice of trustee’s sale (NOTS).
D) conduct a pre-foreclosure workout with the owner

Answer 3

D) conduct a pre-foreclosure workout with the owner.

Question 4

4) Within \_\_\_\_\_\_\_\_ after recording a Notice of Default (NOD), the trustee sends a copy of the NOD by registered or certified mail to holders of a recorded interest in the secured property.
A) one week
B) one month
C) one year
D) two years

Answer 4

B) one month

Question 5

5) At least \_\_\_\_\_\_\_\_\_ the date selected by a trustee to hold a trustee's sale, the trustee sends two copies of the Notice of the Trustee's Sale (NOTS) to each party the trustee previously sent a Notice of Default (NOD).
A) 20 calendar days before
B) 6 business days before
C) 3 months before
D) 30 calendar days before

Answer 5

A) 20 calendar days before

Question 6

6) A trustee’s sale is considered final and complete:
A) when a beneficiary makes a bid.
B) when the trustee records a Notice of Default (NOD).
C) on the trustee’s acceptance of the last and highest bid.
D) when the lender sends the certificate of sale.

Answer 6

C) on the trustee’s acceptance of the last and highest bid.

Question 7

7) A(n) \_\_\_\_\_\_\_ is the court-ordered sale by public auction of a secured property, lasting from eight months to multiple years before it is completed.
A) judicial foreclosure
B) nonjudicial foreclosure
C) trustee's sale
D) power-of-sale foreclosure

Answer 7

A) judicial foreclosure

Question 8

8) A(n) \_\_\_\_\_\_\_ is issued to the successful bidder on the completion of a judicial sale.
A) certificate of sale
B) Notice of Trustee's Sale (NOTS)
C) fair value hearing certificate
D) Advance Fee Disclosure

Answer 8

A) certificate of sale

Question 9

9) The \_\_\_\_\_\_\_ is an itemized deduction for income tax reporting allowing home owners to deduct interest and related charges they pay on a mortgage encumbering their primary or second homes.
A) alternative minimum tax (AMT)
B) mortgage interest deduction (MID)
C) mortgage cramdown
D) short sale proceeds

Answer 9

B) mortgage interest deduction (MID)

Question 10

10) A \_\_\_\_\_\_\_ is an individual's home where the homeowner's immediate family resides a majority of the year, is close to the homeowner's place of employment and banks which handle the homeowner's accounts.
A) recreational vehicle
B) second home
C) vacation property
D) principal residence

Answer 10

D) principal residence