Question 1

Barry purchased Bob's home without accepting obligation for the existing loan. Barry is said to be buying the house

Accepted Answer

A)  subject to the loan. 
B)  with an assumption of the loan. 
C)  with an assumption by substitution of the loan. 
D)  by contract for equitable title. 
A)  subject to the loan. 
B)  with an assumption of the loan. 
C)  with an assumption by substitution of the loan. 
D)  by contract for equitable title.

Question 2

The parties to a mortgage are called

Accepted Answer

A)  mortgagor and grantor. 
B)  mortgagee and beneficiary. 
C)  beneficiary and trustee. 
D)  mortgagor and mortgagee. 
A)  mortgagor and grantor. 
B)  mortgagee and beneficiary. 
C)  beneficiary and trustee. 
D)  mortgagor and mortgagee.

Question 3

Choose the one most appropriate answer for each.
-a clause in a mortgage that allows a lender to call the loan due if the property changes ownership;also known as a due-on-sale clause

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 4

If a foreclosed property has sold for less than the loan amount, the difference between the indebtedness and the sale price of the real estate at the foreclosure sale is called the

Accepted Answer

A)  net price. 
B)  deficit. 
C)  net market value. 
D)  deficiency. 
A)  net price. 
B)  deficit. 
C)  net market value. 
D)  deficiency.

Question 5

Mogan and David buy a furnished house. They assume and agree to the existing mortgage. They will need a note and mortgage.

Accepted Answer

A) True 
 B)False

Question 6

A borrower wants provisions written into his mortgage whereby the lender will remove a portion of the property from the mortgage upon partial repayment of the loan. The borrower would ask for an alienation clause.

Accepted Answer

A) True 
 B)False

Question 7

The mortgage holding the highest priority would be the one that is recorded first.

Accepted Answer

A) True 
 B)False

Question 8

A partial release would allow a developer to release some of the mortgaged property from the mortgage collateral.

Accepted Answer

A) True 
 B)False

Question 9

Choose the one most appropriate answer for each.
-allows the lender to declare the loan due if the borrower defaults

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.
-the evidence of debt;contains amount owed, interest rate, repayment schedule, and a promise to pay

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

A mortgage or trust deed is considered to be

Accepted Answer

A)  an estate in land. 
B)  a promissory note. 
C)  chattel. 
D)  debt security. 
A)  an estate in land. 
B)  a promissory note. 
C)  chattel. 
D)  debt security.

Question 12

In the covenant of good repair the borrower promises not to remove or demolish any buildings or improvements.

Accepted Answer

A) True 
 B)False

Question 13

The right of the mortgagor to reclaim his property upon payment in full of the obligation is

Accepted Answer

A)  reconveyance. 
B)  redemption. 
C)  recapture. 
D)  right of deficiency. 
A)  reconveyance. 
B)  redemption. 
C)  recapture. 
D)  right of deficiency.

Question 14

A deed of trust differs from a traditional mortgage in that it is a three-party agreement.

Accepted Answer

A) True 
 B)False

Question 15

A beneficiary allows a clause in his contract stating that another lender's interest will be allowed to take precedence over his at some later date. This clause is known as

Accepted Answer

A)  a subrogation clause. 
B)  a rogata clause. 
C)  a subordination clause. 
D)  hypothecation. 
A)  a subrogation clause. 
B)  a rogata clause. 
C)  a subordination clause. 
D)  hypothecation.

Question 16

Of the following parties to a mortgage, whose interest is benefited by an acceleration clause?

Accepted Answer

A)  The mortgagor 
B)  The mortgagee 
C)  A future owner 
D)  The trustee 
A)  The mortgagor 
B)  The mortgagee 
C)  A future owner 
D)  The trustee

Question 17

In some states, a mortgage is considered to be a lien on real property. In other states a mortgage is interpreted as

Accepted Answer

A)  a bona fide purchase. 
B)  a transfer of title. 
C)  a sales contract. 
D)  equitable title. 
A)  a bona fide purchase. 
B)  a transfer of title. 
C)  a sales contract. 
D)  equitable title.

Question 18

A deed in lieu of foreclosure relieves the lender of foreclosing and waiting out any required redemption period.

Accepted Answer

A) True 
 B)False

Question 19

An acceleration clause most nearly means to speed up the payments.

Accepted Answer

A) True 
 B)False

Question 20

Choose the one most appropriate answer for each.
-voluntary acceptance of a lower mortgage priority position than one would otherwise be entitled to

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

Exam 8: Mortgage and Note

Barry purchased Bob's home without accepting obligation for the existing loan. Barry is said to be buying the house

The parties to a mortgage are called

Choose the one most appropriate answer for each. -a clause in a mortgage that allows a lender to call the loan due if the property changes ownership;also known as a due-on-sale clause

If a foreclosed property has sold for less than the loan amount, the difference between the indebtedness and the sale price of the real estate at the foreclosure sale is called the

Mogan and David buy a furnished house. They assume and agree to the existing mortgage. They will need a note and mortgage.

A borrower wants provisions written into his mortgage whereby the lender will remove a portion of the property from the mortgage upon partial repayment of the loan. The borrower would ask for an alienation clause.

The mortgage holding the highest priority would be the one that is recorded first.

A partial release would allow a developer to release some of the mortgaged property from the mortgage collateral.

Choose the one most appropriate answer for each. -allows the lender to declare the loan due if the borrower defaults

Choose the one most appropriate answer for each. -the evidence of debt;contains amount owed, interest rate, repayment schedule, and a promise to pay

A mortgage or trust deed is considered to be

In the covenant of good repair the borrower promises not to remove or demolish any buildings or improvements.

The right of the mortgagor to reclaim his property upon payment in full of the obligation is

A deed of trust differs from a traditional mortgage in that it is a three-party agreement.

A beneficiary allows a clause in his contract stating that another lender's interest will be allowed to take precedence over his at some later date. This clause is known as

Of the following parties to a mortgage, whose interest is benefited by an acceleration clause?

In some states, a mortgage is considered to be a lien on real property. In other states a mortgage is interpreted as

A deed in lieu of foreclosure relieves the lender of foreclosing and waiting out any required redemption period.

An acceleration clause most nearly means to speed up the payments.

Choose the one most appropriate answer for each. -voluntary acceptance of a lower mortgage priority position than one would otherwise be entitled to

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

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