Exam 26: Credit, mortgages, and Debtors Rights

A collection action against a debtor who is judgment proof is not likely to be successful.

Which of the following statements is true of the Consumer Financial Protection Bureau (CFPB)?

Garnishment is a court order that permits the seizure of a debtor's property that is in the debtor's possession.

The party borrowing money is usually called a ________.

A court action is necessary for a power of sale foreclosure to be considered valid.

A lien release signed by a supplier prevents the supplier from later pursing a mechanic's lien against real property.

A deficiency judgment protects a mortgagor from being personally sued in case there is a foreclosure sale deficiency.

A legal procedure by which a secured creditor causes the judicial sale of the secured real estate to pay a defaulted loan is known as ________.

A power stated in a mortgage or deed that permits foreclosure without court proceedings and sale of the property through an auction is known as ________.

Casual leases between consumers are subject to the Consumer Leasing Act.

An unsecured creditor is a creditor who has to rely on collateral to secure payment.

Credit that does not require any collateral to protect the payment of the debt is referred to as ________.

The ________ prohibits deficiency judgments regarding certain types of mortgages,such as those on residential property.

Default is a situation where the debtor has not made payment when it is due.

Gunther wins a $25,000 judgment against Krissa,and Krissa refuses to pay.Krissa works for Iniversal Electronics.Gunther obtains a postjudgment writ of garnishment from the court ordering Iniversal Electronics to pay 25 percent of Krissa's weekly disposable earnings directly to Gunther.However,Gunther is not satisfied with this,and he asks the court to increase Krissa's pay deduction to 50 percent,which the court refuses to do.Which federal Act allows Krissa to retain 75 percent or more of her earnings in a writ of garnishment?

In a deed of trust,the creditor is the beneficiary.

A right that allows the mortgagor to redeem real property after default and before foreclosure is known as ________.

The Consumer Financial Protection Bureau (CFP B)has authority to supervise all participants in the consumer finance and mortgage area, including depository institutions.

Which of the following is true about a surety's liability to pay in a surety arrangement?

A postjudgment court order that permits the seizure of a debtor's property that is in the possession of third parties is known as the ________.