REAE 3325 CH 8 & 9 Exam Questions
and Answers 100% Correct
The element of an adjustable interest rate that is the "moving part" is the:
Teaser rate
Index
Margin
Adjustment period
None of these - ANSWER-Index
A lender may reserve the right to require prepayment of a loan at any time they see fit
through a:
Taking clause
Acceleration clause
Demand clause
Due on sale clause
Escrow clause - ANSWER-Demand Clause
When a buyer of a property with an existing mortgage loan acquires the property
without signing the note for the existing loan the buyer is acquiring the property:
By assumption
By contract for deed
By deed of trust
By default
Subject to the mortgage - ANSWER-Subject to the mortgage
To finance property where either the borrower, the property, or both fail to qualify for the
standard mortgage financing, a common nonmortgage solution is through the:
Subprime loan
Deed of trust
Unsecured loan
Contract for deed
Balloon loan - ANSWER-Contract for deed
A common risk that frequently interferes with a lender's efforts to work out a defaulted
loan through either non-foreclosure means or foreclosure is:
Equity of redemption
Statutory right of redemption
Exculpatory clauses
Bankruptcy
Deficiency judgement - ANSWER-Bankruptcy
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