45 hours Post Licensing Chapter 10-13 (All Correct) / Latest
( ) Graded A++
Forbearance or Moratorium
(to avoid foreclosure) correct answers waiver of principal payments (interest Only)
Deferred interest (Principal only)
Restructure the Mortgage loan correct answers involves lowering the interest rates, accruals of
interest, or extended maturity date.
nonrecourse loan correct answers 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 correct answers is called Recasting
transfers the mortgage to a new owner correct answers assume the loan or take the property
subject to the existing mortgage.
Deed in Lieu of Foreclosure correct answers 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 correct answers IRS may considered this
forgiveness of debt income and therefore taxable to the borrower as a gift from the lender.
Short Sale Transaction correct answers 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 correct answers 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 correct answers seller to missed multiple payments
with negative impact on credit
show financial hardship
Establishing financial hardship correct answers seller need to write a letter lost job
however medical issue to move closer to medical facility is not a hardship.
declining values alone no a hardship
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