45 hours Post Licensing Exam
Questions with Correct Answers
Forbearance or Moratorium
(to avoid foreclosure) - Answer-waiver of principal payments (interest Only)
Deferred interest (Principal only)
Restructure the Mortgage loan - Answer-involves lowering the interest rates, accruals of
interest, or extended maturity date.
nonrecourse loan - Answer-borrower is not personal liable for the original loan, the
lender could decided to make the borrower personally liable as part of the restructuring
agreement.
the process of redesigning a loan - Answer-is called Recasting
transfers the mortgage to a new owner - Answer-assume the loan or take the property
subject to the existing mortgage.
Deed in Lieu of Foreclosure - Answer-buyer can't make payments
borrower sells the equity to the lender
minimizes expenses of foreclosure
lender may not accept
also called Voluntary Conveyance
Tax consequences in deed in lieu foreclosure - Answer-IRS may considered this
forgiveness of debt income and therefore taxable to the borrower as a gift from the
lender.
Short Sale Transaction - Answer-seller enters into a settlement agreement with the
lender where the lender consents to a sale price for the property that is below the
outstanding loan balance. the sale proceeds fall short of the amount owed to the lender
Requirements in a Short Sale - Answer-property has been offered for sale on the
market for a certain number of days at a reasonable price.
that the offers received are acceptable and legitimated
Lender will want to check the value of the property BPO, appraisal or both
qualifying the seller for a short sale requires - Answer-seller to missed multiple
payments with negative impact on credit
show financial hardship
Establishing financial hardship - Answer-seller need to write a letter lost job
however medical issue to move closer to medical facility is not a hardship.
Questions with Correct Answers
Forbearance or Moratorium
(to avoid foreclosure) - Answer-waiver of principal payments (interest Only)
Deferred interest (Principal only)
Restructure the Mortgage loan - Answer-involves lowering the interest rates, accruals of
interest, or extended maturity date.
nonrecourse loan - Answer-borrower is not personal liable for the original loan, the
lender could decided to make the borrower personally liable as part of the restructuring
agreement.
the process of redesigning a loan - Answer-is called Recasting
transfers the mortgage to a new owner - Answer-assume the loan or take the property
subject to the existing mortgage.
Deed in Lieu of Foreclosure - Answer-buyer can't make payments
borrower sells the equity to the lender
minimizes expenses of foreclosure
lender may not accept
also called Voluntary Conveyance
Tax consequences in deed in lieu foreclosure - Answer-IRS may considered this
forgiveness of debt income and therefore taxable to the borrower as a gift from the
lender.
Short Sale Transaction - Answer-seller enters into a settlement agreement with the
lender where the lender consents to a sale price for the property that is below the
outstanding loan balance. the sale proceeds fall short of the amount owed to the lender
Requirements in a Short Sale - Answer-property has been offered for sale on the
market for a certain number of days at a reasonable price.
that the offers received are acceptable and legitimated
Lender will want to check the value of the property BPO, appraisal or both
qualifying the seller for a short sale requires - Answer-seller to missed multiple
payments with negative impact on credit
show financial hardship
Establishing financial hardship - Answer-seller need to write a letter lost job
however medical issue to move closer to medical facility is not a hardship.
