Question 1

If an owner of a single-family residence defaults on his mortgage, it can

Accepted Answer

A)  not be foreclosed if an ALTA title insurance policy insured it. 
B)  be foreclosed on. 
C)  not be foreclosed on if the mortgage went into effect before 1978. 
D)  only be foreclosed on if an ALTA title insurance policy insured it. 
A)  not be foreclosed if an ALTA title insurance policy insured it. 
B)  be foreclosed on. 
C)  not be foreclosed on if the mortgage went into effect before 1978. 
D)  only be foreclosed on if an ALTA title insurance policy insured it.

Question 2

Unless there is a specific agreement to the contrary, the mortgage having first priority will be the

Accepted Answer

A)  mortgage first recorded. 
B)  mortgage for the highest amount. 
C)  original construction loan. 
D)  mortgage with the earliest signature date. 
A)  mortgage first recorded. 
B)  mortgage for the highest amount. 
C)  original construction loan. 
D)  mortgage with the earliest signature date.

Question 3

Any mortgage with a lower priority than the first mortgage is known as a ____________________ mortgage.

Accepted Answer

The answer of Any mortgage with a lower priority than...

Question 4

Choose the one most appropriate answer for each.
-a clause in a mortgage that gives the mortgagee the right to conduct a foreclosure sale without first going to court

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 5

Choose the one most appropriate answer for each.
-the buyer personally obligates himself to repay an existing mortgage loan as a condition of the sale

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 6

The phrase "jointly and severally liable" in a note or bond applies when there are two or more

Accepted Answer

A)  makers. 
B)  obligees. 
C)  trustees. 
D)  holders. 
A)  makers. 
B)  obligees. 
C)  trustees. 
D)  holders.

Question 7

A(n)____________________ clause allows the lender to call the entire balance due if the borrower sells or conveys the mortgaged property.

Accepted Answer

The answer of A(n)____________________ clause allows the lender to call...

Question 8

Strict foreclosure is a nonjudicial foreclosure without a judicial sale and usually without a statutory redemption period.

Accepted Answer

A) True 
 B)False

Question 9

Choose the one most appropriate answer for each.
-the mortgage loan with highest priority for repayment in the event of foreclosure

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

Choose the one most appropriate answer for each.
-a document by which property secures the repayment of the debt

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 11

That portion of a mortgage that requires the borrower to preserve and maintain the pledged property is called the covenant of good repair.

Accepted Answer

A) True 
 B)False

Question 12

Which is an example of pledged property?

Accepted Answer

A)  Estoppel 
B)  Covenant 
C)  Dedication deed 
D)  Real estate given as security 
A)  Estoppel 
B)  Covenant 
C)  Dedication deed 
D)  Real estate given as security

Question 13

In the United States, the instrument most commonly used to evidence a debt on real property is

Accepted Answer

A)  a promissory note. 
B)  a mortgagee's title policy. 
C)  a bill of sale. 
D)  an earnest money agreements. 
A)  a promissory note. 
B)  a mortgagee's title policy. 
C)  a bill of sale. 
D)  an earnest money agreements.

Question 14

When a clause in a mortgage allows the lender to proceed against a borrower's other assets if the foreclosure sale does not satisfy the debt, the result is called a

Accepted Answer

A)  statutory redemption. 
B)  deficiency judgment. 
C)  equity of redemption. 
D)  foreclosure redemption. 
A)  statutory redemption. 
B)  deficiency judgment. 
C)  equity of redemption. 
D)  foreclosure redemption.

Question 15

Choose the one most appropriate answer for each.
-a clause in a mortgage stating that the mortgage is defeated if the borrower repays the accompanying note on time

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

To use property as security for a debt without giving up possession is called hypothecation.

Accepted Answer

A) True 
 B)False

Question 17

In a promissory note the entity to which the debt is owed is known as the ____________________ or ____________________.

Accepted Answer

The answer of In a promissory note the entity to...

Question 18

Choose the one most appropriate answer for each.
-a lawsuit filed by a lender that asks a court to set a time limit on how long a borrower has to redeem her property

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

The covenant of _________________________ requires the borrower to keep the mortgaged property in good condition.

Accepted Answer

The answer of The covenant of _________________________ requires the borrower...

Question 20

A legal description of the property typically appears in a promissory note.

Accepted Answer

A) True 
 B)False

Exam 8: Mortgage and Note

If an owner of a single-family residence defaults on his mortgage, it can

Unless there is a specific agreement to the contrary, the mortgage having first priority will be the

Any mortgage with a lower priority than the first mortgage is known as a ____________________ mortgage.

Choose the one most appropriate answer for each. -a clause in a mortgage that gives the mortgagee the right to conduct a foreclosure sale without first going to court

Choose the one most appropriate answer for each. -the buyer personally obligates himself to repay an existing mortgage loan as a condition of the sale

The phrase "jointly and severally liable" in a note or bond applies when there are two or more

A(n)____________________ clause allows the lender to call the entire balance due if the borrower sells or conveys the mortgaged property.

Strict foreclosure is a nonjudicial foreclosure without a judicial sale and usually without a statutory redemption period.

Choose the one most appropriate answer for each. -the mortgage loan with highest priority for repayment in the event of foreclosure

Choose the one most appropriate answer for each. -a document by which property secures the repayment of the debt

That portion of a mortgage that requires the borrower to preserve and maintain the pledged property is called the covenant of good repair.

Which is an example of pledged property?

In the United States, the instrument most commonly used to evidence a debt on real property is

When a clause in a mortgage allows the lender to proceed against a borrower's other assets if the foreclosure sale does not satisfy the debt, the result is called a

Choose the one most appropriate answer for each. -a clause in a mortgage stating that the mortgage is defeated if the borrower repays the accompanying note on time

To use property as security for a debt without giving up possession is called hypothecation.

In a promissory note the entity to which the debt is owed is known as the ____________________ or ____________________.

Choose the one most appropriate answer for each. -a lawsuit filed by a lender that asks a court to set a time limit on how long a borrower has to redeem her property

The covenant of _________________________ requires the borrower to keep the mortgaged property in good condition.

A legal description of the property typically appears in a promissory note.

Nature and Description of Real Estate

Rights and Interests in Land

Forms of Ownership

Transferring Title

Recordation Abstracts and Title Insurance

Contract Law

Real Estate Sales Contracts

Deed of Trust

Lending Practices

The Loan and the Consumer

Sources of Financing

Types of Financing

Taxes and Assessments

Title Closing and Escrow

Real Estate Leases

Real Estate Appraisal

Licensing Laws and Professional Affiliation

The Principal-Broker Relationship: Employment

The Principal-Broker Relationship: Agency

Fair Housing, Ada, Equal Credit, and Community Reinvestment

Condominiums, Cooperatives, Puds, and Timeshares

Property Insurance

Land-Use Control

Real Estate and the Economy

Investing in Real Estate

Filters

In a promissory note the entity to which the debt is owed is known as the or .