Question 1

In a promissory note, the term "principal" refers to the borrower.

Accepted Answer

A) True 
 B)False

Question 2

____________________ means the borrower retains the right to possess and use the property while it serves as collateral.

Accepted Answer

The answer of ____________________ means the borrower retains the right...

Question 3

In a foreclosure, a surplus money action would be filed by the junior mortgage holder.

Accepted Answer

A) True 
 B)False

Question 4

Choose the one most appropriate answer for each.
-an agreement that is considered to be a mortgage in its intent even though it may not follow the usual mortgage wording

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.
-a deed given to a trustee as security for a 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 6

An alienation clause in a mortgage loan is to the advantage of the

Accepted Answer

A)  borrower. 
B)  lender. 
C)  mortgagor. 
D)  seller. 
A)  borrower. 
B)  lender. 
C)  mortgagor. 
D)  seller.

Question 7

Which of the following requires a public sale?

Accepted Answer

A)  Strict foreclosure 
B)  Entry and possession 
C)  Deed in lieu of foreclosure 
D)  Power of sale 
A)  Strict foreclosure 
B)  Entry and possession 
C)  Deed in lieu of foreclosure 
D)  Power of sale

Question 8

When a property sells at a foreclosure sale for less than the debt, a(n)______________________________ may allow the lender to proceed against the borrower's other unsecured assets.

Accepted Answer

The answer of When a property sells at a foreclosure...

Question 9

A mortgagee allows a clause in his contract stating that another lender's interest will be allowed to take precedence over his own. This clause is a subordination clause.

Accepted Answer

A) True 
 B)False

Question 10

The right, which allows the mortgagor to regain his property following a mortgage foreclosure, is known as

Accepted Answer

A)  right of redemption. 
B)  due on sale. 
C)  satisfaction of mortgage. 
D)  defeasance. 
A)  right of redemption. 
B)  due on sale. 
C)  satisfaction of mortgage. 
D)  defeasance.

Question 11

A clause that allows the lender to demand immediate payment of the entire balance on a note if the borrower misses the obligatory payments is known as a(n)____________________ clause.

Accepted Answer

The answer of A clause that allows the lender to...

Question 12

A second mortgage is

Accepted Answer

A)  a seller's lien. 
B)  a smaller loan. 
C)  paid off 50/50 with a first mortgage at foreclosure. 
D)  junior to a superior mortgage lien. 
A)  a seller's lien. 
B)  a smaller loan. 
C)  paid off 50/50 with a first mortgage at foreclosure. 
D)  junior to a superior mortgage lien.

Question 13

Choose the one most appropriate answer for each.
-one who gives a mortgage;the borrower

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 14

At the same time that a lawsuit is filled with the court, a notice of lis pendens is also filed with the court.

Accepted Answer

A) True 
 B)False

Question 15

A property is sold and the buyer promises the seller in writing that he, the buyer, will repay the existing loan. This is called

Accepted Answer

A)  assuming the loan. 
B)  buying down the loan. 
C)  loan satisfaction. 
D)  a partial release. 
A)  assuming the loan. 
B)  buying down the loan. 
C)  loan satisfaction. 
D)  a partial release.

Question 16

A borrower who wanted to make a monthly payment larger than that called for by the note, could do so if the note contains a

Accepted Answer

A)  prepayment privilege. 
B)  grace period. 
C)  prepayment penalty. 
D)  subordination clause. 
A)  prepayment privilege. 
B)  grace period. 
C)  prepayment penalty. 
D)  subordination clause.

Question 17

Provisions for the defeat of a mortgage are found in the defeasance clause.

Accepted Answer

A) True 
 B)False

Question 18

A(n)____________________ foreclosure does not go to court and is not heard by a judge.

Accepted Answer

The answer of A(n)____________________ foreclosure does not go to court...

Question 19

A promissory note

Accepted Answer

A)  describes the property being hypothecated. 
B)  is the primary evidence of a loan. 
C)  is an agreement not to do a certain thing. 
D)  is not negotiable when secured by a mortgage. 
A)  describes the property being hypothecated. 
B)  is the primary evidence of a loan. 
C)  is an agreement not to do a certain thing. 
D)  is not negotiable when secured by a mortgage.

Question 20

A mortgagor signs a deed conveying title to the mortgagee, leaving the mortgagee without recourse. This is an example of

Accepted Answer

A)  deed of surrender. 
B)  deed in lieu of foreclosure. 
C)  satisfaction of mortgage. 
D)  defeasance. 
A)  deed of surrender. 
B)  deed in lieu of foreclosure. 
C)  satisfaction of mortgage. 
D)  defeasance.

Exam 8: Mortgage and Note

In a promissory note, the term "principal" refers to the borrower.

____________________ means the borrower retains the right to possess and use the property while it serves as collateral.

In a foreclosure, a surplus money action would be filed by the junior mortgage holder.

Choose the one most appropriate answer for each. -an agreement that is considered to be a mortgage in its intent even though it may not follow the usual mortgage wording

Choose the one most appropriate answer for each. -a deed given to a trustee as security for a loan

An alienation clause in a mortgage loan is to the advantage of the

Which of the following requires a public sale?

When a property sells at a foreclosure sale for less than the debt, a(n)______________________________ may allow the lender to proceed against the borrower's other unsecured assets.

A mortgagee allows a clause in his contract stating that another lender's interest will be allowed to take precedence over his own. This clause is a subordination clause.

The right, which allows the mortgagor to regain his property following a mortgage foreclosure, is known as

A clause that allows the lender to demand immediate payment of the entire balance on a note if the borrower misses the obligatory payments is known as a(n)____________________ clause.

A second mortgage is

Choose the one most appropriate answer for each. -one who gives a mortgage;the borrower

At the same time that a lawsuit is filled with the court, a notice of lis pendens is also filed with the court.

A property is sold and the buyer promises the seller in writing that he, the buyer, will repay the existing loan. This is called

A borrower who wanted to make a monthly payment larger than that called for by the note, could do so if the note contains a

Provisions for the defeat of a mortgage are found in the defeasance clause.

A(n)____________________ foreclosure does not go to court and is not heard by a judge.

A promissory note

A mortgagor signs a deed conveying title to the mortgagee, leaving the mortgagee without recourse. This is an example of

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