An instrument that evidences one person owing another money is
- collateral.
- chattel.
- a note.
- a mortgage.
a note
A mortgage which is subordinate to another mortgage is called a
- first mortgage.
- purchase money mortgage.
- package mortgage.
- junior mortgage.
junior mortgage
Which form of financing would be the greatest risk to the buyer?
- Wraparound mortgage
- Buydown mortgage
- Installment land contract mortgage
- Second mortgage
Installment land contract mortgage
A clause in a mortgage releasing the indebtedness once the loan is paid off is
- defeasance.
- alienation.
- subordination.
- acceleration.
defeasance
A promissory note would usually contain each EXCEPT
- the interest rate charged.
- the total amount owed.
- the terms of payment.
- physical description of the collateral.
physical description of the collateral
Which BEST describes an owner’s equity in the property?
- The value of the property
- The value over and above the outstanding mortgage balance
- The amount of equitable redemption
- The amount of the commission owed on the sale
The value over and above the outstanding mortgage balance
If the amount realized at the foreclosure sale is more than the indebtedness, the excess belongs to
- the sheriff’s office.
- the mortgagee.
- the mortgagor.
- the grantor.
the mortgagor
Foreclosure would terminate
- statutory redemption rights.
- assignment and novation.
- equitable right of redemption.
- All of the above.
equitable right of redemption
Ronald defaulted on his home mortgage payments. The lender obtained a court order to foreclose on the property. At the foreclosure sale, Ronald’s house sold for $29,000 and the unpaid balance of his loan is $40,000. What must the lender do to recover the $11,000 Ronald still owes?
- Sue for damages.
- Sue for specific performance.
- Seek a deficiency judgment.
- Seek a lis pendens.
Seek a deficiency judgment
In an installment land contract, what type of title did the seller retain until the loan was paid?
- Legal
- Equitable
- Tenancy on common
- Joint tenancy
Legal
When the borrower’s mortgage is more than the market value of a home and they MUST sell the home, a/an ___________ might be negotiated with the bank.
- foreclosure
- trade
- equity loan
- short sale
short sale
