Question 1

When a borrower gets behind on his loan payments, the lender could call for the entire balance due immediately based on the

Accepted Answer

A)  alienation clause. 
B)  acceleration clause. 
C)  subordination clause. 
D)  pre-payment clause. 
A)  alienation clause. 
B)  acceleration clause. 
C)  subordination clause. 
D)  pre-payment clause. B

Question 2

A lawsuit, filed by the lender, requesting that a borrower's interest in his property be cut off is called a defeasance suit.

Accepted Answer

A) True 
 B)False  False

Question 3

A power of sale in a mortgage gives the lender the power to take ownership and sell the mortgaged property without taking the issue to court.

Accepted Answer

A) True 
 B)False  False

Question 4

Which of the following claims against a real property interest would be the first to be satisfied?

Accepted Answer

A)  First trust deed 
B)  Second trust deed 
C)  Property taxes 
D)  Newly filed IRS tax lien 
A)  First trust deed 
B)  Second trust deed 
C)  Property taxes 
D)  Newly filed IRS tax lien

Question 5

When a lender voluntarily takes a lower position than he would normally be entitled to the process is known as ____________________.

Accepted Answer

The answer of When a lender voluntarily takes a lower...

Question 6

Choose the one most appropriate answer for each.
-the right of a borrower, after a foreclosure sale, to reclaim the property by repaying the defaulted loan

Accepted Answer

A) acceleration clause 
B) alienation clause 
C) assumption 
D) chattel mortgage 
E) deed of trust
F)defeasance clause
G)deficiency judgment
H)equitable mortgage
I)equity of redemption
J)first mortgage
K)foreclosure
L)junior mortgage
M)mortgage
N)mortgagor
O)partial release
P)power of sale
Q)promissory note
R)public auction
S)subject to
T)subordination 
A) acceleration clause 
B) alienation clause 
C) assumption 
D) chattel mortgage 
E) deed of trust
F)defeasance clause
G)deficiency judgment
H)equitable mortgage
I)equity of redemption
J)first mortgage
K)foreclosure
L)junior mortgage
M)mortgage
N)mortgagor
O)partial release
P)power of sale
Q)promissory note
R)public auction
S)subject to
T)subordination

Question 7

When a loan evidenced by a note is secured by a mortgage, the funds are furnished by the

Accepted Answer

A)  grantor. 
B)  beneficiary. 
C)  grantee. 
D)  lender. 
A)  grantor. 
B)  beneficiary. 
C)  grantee. 
D)  lender.

Question 8

Who benefits the most by the inclusion of a subordination clause in a mortgage?

Accepted Answer

A)  Borrower 
B)  Lender 
C)  Selling broker 
D)  Trustee 
A)  Borrower 
B)  Lender 
C)  Selling broker 
D)  Trustee

Question 9

Choose the one most appropriate answer for each.
-a document wherein personal property is used as security for a promissory note

Accepted Answer

A) acceleration clause 
B) alienation clause 
C) assumption 
D) chattel mortgage 
E) deed of trust
F)defeasance clause
G)deficiency judgment
H)equitable mortgage
I)equity of redemption
J)first mortgage
K)foreclosure
L)junior mortgage
M)mortgage
N)mortgagor
O)partial release
P)power of sale
Q)promissory note
R)public auction
S)subject to
T)subordination 
A) acceleration clause 
B) alienation clause 
C) assumption 
D) chattel mortgage 
E) deed of trust
F)defeasance clause
G)deficiency judgment
H)equitable mortgage
I)equity of redemption
J)first mortgage
K)foreclosure
L)junior mortgage
M)mortgage
N)mortgagor
O)partial release
P)power of sale
Q)promissory note
R)public auction
S)subject to
T)subordination

Question 10

Which lien would have highest priority?

Accepted Answer

A)  Property tax lien 
B)  Mechanic's lien 
C)  First mortgage or trust deed 
D)  The lien which is recorded first 
A)  Property tax lien 
B)  Mechanic's lien 
C)  First mortgage or trust deed 
D)  The lien which is recorded first

Question 11

Choose the one most appropriate answer for each.
-the usual procedure by which foreclosed properties are sold

Accepted Answer

A) acceleration clause 
B) alienation clause 
C) assumption 
D) chattel mortgage 
E) deed of trust
F)defeasance clause
G)deficiency judgment
H)equitable mortgage
I)equity of redemption
J)first mortgage
K)foreclosure
L)junior mortgage
M)mortgage
N)mortgagor
O)partial release
P)power of sale
Q)promissory note
R)public auction
S)subject to
T)subordination 
A) acceleration clause 
B) alienation clause 
C) assumption 
D) chattel mortgage 
E) deed of trust
F)defeasance clause
G)deficiency judgment
H)equitable mortgage
I)equity of redemption
J)first mortgage
K)foreclosure
L)junior mortgage
M)mortgage
N)mortgagor
O)partial release
P)power of sale
Q)promissory note
R)public auction
S)subject to
T)subordination

Question 12

Choose the one most appropriate answer for each.
-any mortgage lower than a first mortgage in priority

Accepted Answer

A) acceleration clause 
B) alienation clause 
C) assumption 
D) chattel mortgage 
E) deed of trust
F)defeasance clause
G)deficiency judgment
H)equitable mortgage
I)equity of redemption
J)first mortgage
K)foreclosure
L)junior mortgage
M)mortgage
N)mortgagor
O)partial release
P)power of sale
Q)promissory note
R)public auction
S)subject to
T)subordination 
A) acceleration clause 
B) alienation clause 
C) assumption 
D) chattel mortgage 
E) deed of trust
F)defeasance clause
G)deficiency judgment
H)equitable mortgage
I)equity of redemption
J)first mortgage
K)foreclosure
L)junior mortgage
M)mortgage
N)mortgagor
O)partial release
P)power of sale
Q)promissory note
R)public auction
S)subject to
T)subordination

Question 13

Betty is six months behind on her mortgage payments. Foreclosure by public auction has been ordered. The sale has not been completed. Betty may redeem her property by paying the

Accepted Answer

A)  last six months payments. 
B)  full amount of the loan balance. 
C)  loan balance plus accrued interest. 
D)  loan balance, accrued interest and the accumulated cost of the foreclosure action and sale. 
A)  last six months payments. 
B)  full amount of the loan balance. 
C)  loan balance plus accrued interest. 
D)  loan balance, accrued interest and the accumulated cost of the foreclosure action and sale.

Question 14

A "due on sale" clause

Accepted Answer

A)  may be called a subordination clause. 
B)  gives the lender the right to call the entire loan balance upon alienation. 
C)  is the right of a mortgagor to repay a loan. 
D)  gives the mortgagor the right to sell his property with a loan assumption by the buyer. 
A)  may be called a subordination clause. 
B)  gives the lender the right to call the entire loan balance upon alienation. 
C)  is the right of a mortgagor to repay a loan. 
D)  gives the mortgagor the right to sell his property with a loan assumption by the buyer.

Question 15

Choose the one most appropriate answer for each.
-release of a portion of a property from a mortgage

Accepted Answer

A) acceleration clause 
B) alienation clause 
C) assumption 
D) chattel mortgage 
E) deed of trust
F)defeasance clause
G)deficiency judgment
H)equitable mortgage
I)equity of redemption
J)first mortgage
K)foreclosure
L)junior mortgage
M)mortgage
N)mortgagor
O)partial release
P)power of sale
Q)promissory note
R)public auction
S)subject to
T)subordination 
A) acceleration clause 
B) alienation clause 
C) assumption 
D) chattel mortgage 
E) deed of trust
F)defeasance clause
G)deficiency judgment
H)equitable mortgage
I)equity of redemption
J)first mortgage
K)foreclosure
L)junior mortgage
M)mortgage
N)mortgagor
O)partial release
P)power of sale
Q)promissory note
R)public auction
S)subject to
T)subordination

Question 16

Choose the one most appropriate answer for each.
-the buyer of an already mortgaged property makes the payment but does not take personal responsibility for the loan

Accepted Answer

A) acceleration clause 
B) alienation clause 
C) assumption 
D) chattel mortgage 
E) deed of trust
F)defeasance clause
G)deficiency judgment
H)equitable mortgage
I)equity of redemption
J)first mortgage
K)foreclosure
L)junior mortgage
M)mortgage
N)mortgagor
O)partial release
P)power of sale
Q)promissory note
R)public auction
S)subject to
T)subordination 
A) acceleration clause 
B) alienation clause 
C) assumption 
D) chattel mortgage 
E) deed of trust
F)defeasance clause
G)deficiency judgment
H)equitable mortgage
I)equity of redemption
J)first mortgage
K)foreclosure
L)junior mortgage
M)mortgage
N)mortgagor
O)partial release
P)power of sale
Q)promissory note
R)public auction
S)subject to
T)subordination

Question 17

A nonjudicial foreclosure does not go to court and is not heard by a judge.

Accepted Answer

A) True 
 B)False

Question 18

Choose the one most appropriate answer for each.
-a judgment against a borrower if the sale of a mortgaged property at foreclosure does not bring enough to pay the balance owing

Accepted Answer

A) acceleration clause 
B) alienation clause 
C) assumption 
D) chattel mortgage 
E) deed of trust
F)defeasance clause
G)deficiency judgment
H)equitable mortgage
I)equity of redemption
J)first mortgage
K)foreclosure
L)junior mortgage
M)mortgage
N)mortgagor
O)partial release
P)power of sale
Q)promissory note
R)public auction
S)subject to
T)subordination 
A) acceleration clause 
B) alienation clause 
C) assumption 
D) chattel mortgage 
E) deed of trust
F)defeasance clause
G)deficiency judgment
H)equitable mortgage
I)equity of redemption
J)first mortgage
K)foreclosure
L)junior mortgage
M)mortgage
N)mortgagor
O)partial release
P)power of sale
Q)promissory note
R)public auction
S)subject to
T)subordination

Question 19

A mortgagee in a lien theory state holds

Accepted Answer

A)  legal title. 
B)  a note. 
C)  naked title. 
D)  naked legal title. 
A)  legal title. 
B)  a note. 
C)  naked title. 
D)  naked legal title.

Question 20

In ____________________ theory states, the mortgage gives only a lien right to the lender and the borrower retains title.

Accepted Answer

The answer of In ____________________ theory states, the mortgage gives...

Exam 8: Mortgage and Note

When a borrower gets behind on his loan payments, the lender could call for the entire balance due immediately based on the

A lawsuit, filed by the lender, requesting that a borrower's interest in his property be cut off is called a defeasance suit.

A power of sale in a mortgage gives the lender the power to take ownership and sell the mortgaged property without taking the issue to court.

Which of the following claims against a real property interest would be the first to be satisfied?

When a lender voluntarily takes a lower position than he would normally be entitled to the process is known as ____________________.

Choose the one most appropriate answer for each. -the right of a borrower, after a foreclosure sale, to reclaim the property by repaying the defaulted loan

When a loan evidenced by a note is secured by a mortgage, the funds are furnished by the

Who benefits the most by the inclusion of a subordination clause in a mortgage?

Choose the one most appropriate answer for each. -a document wherein personal property is used as security for a promissory note

Which lien would have highest priority?

Choose the one most appropriate answer for each. -the usual procedure by which foreclosed properties are sold

Choose the one most appropriate answer for each. -any mortgage lower than a first mortgage in priority

Betty is six months behind on her mortgage payments. Foreclosure by public auction has been ordered. The sale has not been completed. Betty may redeem her property by paying the

A "due on sale" clause

Choose the one most appropriate answer for each. -release of a portion of a property from a mortgage

Choose the one most appropriate answer for each. -the buyer of an already mortgaged property makes the payment but does not take personal responsibility for the loan

A nonjudicial foreclosure does not go to court and is not heard by a judge.

Choose the one most appropriate answer for each. -a judgment against a borrower if the sale of a mortgaged property at foreclosure does not bring enough to pay the balance owing

A mortgagee in a lien theory state holds

In ____________________ theory states, the mortgage gives only a lien right to the lender and the borrower retains title.

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