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Exam 15: Financing in the Transfer of Real Estate

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Question 91

True/False

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The new laws on appraisals allow lenders to have a say on the final appraisal figure.

A) True
B) False

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Question 92

Multiple Choice

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A deed in lieu of foreclosure:

A) Is unconstitutional.
B) Must entitle the mortgagor to a clean credit report.
C) Must still be followed by judicial proceedings.
D) Is a quitclaim deed.

E) B) and C)
F) A) and D)

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Question 93

True/False

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In a lien state, the mortgagee holds title to the property.

There is little difference in the foreclosure rates on LMI mortgage loans vs. conventional mortgage loans.

A deed in lieu of foreclosure cannot be given without credit counseling.

The Secure and Fair Enforcement of the Mortgage Licensing Act of 2008 provides mortgage relief for home buyers who secured their mortgages prior to January 2007.

Debra Montrose is on active military duty in Afghanistan when she is notified by her parents that she has received a foreclosure notice on her home. Which of the following is true?

In a wrap-around, the buyer is personally liable on the existing mortgage.

Which of the following rights does a lender have when a mortgager is in default?

On May 1, 2018, Cynthia Hendrix bought her home and First Bank recorded its mortgage. On June 24, 2020, Cynthia sold her home to Stanton Gulbrandsen for $250,000. At that time, Cynthia's mortgage was $225,000. Stanton assumed Cynthia's mortgage and gave Second Bank a second mortgage for $225,000. Second Bank did not record its mortgage. On October 12, 2020, Stanton sold the home to Derek Bolger for $275,000. Bolger took the property subject to the previous mortgages and executed a $275,000 mortgage to Third Bank. Third Bank recorded its mortgage on October 18, 2020. Third Bank knew of the Second Bank mortgage. -In a race state, which mortgage company has priority?

Louis and Karen Moroz can no longer make the payments on their home. They owe $280,000 on their mortgage and their home was appraised at $195,000. The Morozes decide to just walk away from their home. Suppose that Louis and Karen removed their water heater, kitchen cupboards, and toilets. What can the mortgagee do?

What is ATR?

Mortgage Assistance Relief Programs are not now regulated as a result of new regulations.

A purchase contract is the same thing as an installment contract.

Installment land contracts provide for the debtor's forfeiture of the property in the event of a default.

James and Debra Reid purchased a home for $623,000 in January 2014. They put down $62,300 and financed the remainder with Fifth Third Bank. Fifth Third Bank recorded its mortgage on February 1, 2014. On March 31, 2014, the Reids purchased a swimming pool and the pool contractors, Cristoria Pools, financed the construction for $45.000. Cristoria recorded a second mortgage on the property on April 15, 2014. On December 15, 2014, the Reids sold their house to the Griffins for $720,000. The Griffins put $120,000 down and agreed to pay the Reids for the existing mortgage in wrap-around. The mortgage balance at the time of the sale was $619,000. The balance on the Cristoria mortgage was $42,000. On August 15, 2015, the Griffins defaulted on their payments. The Reids had already purchased another home and were unable to make the payments on the home. Fifth Third Bank foreclosed on the mortgage. -Who has first priority on the sales proceeds after expenses are paid?

When a debtor returns to the original lender and requests help with loan modification, the process is called:

Cities are using eminent domain to solve the problems created by foreclosure ghettos.

On May 1, 2018, Cynthia Hendrix bought her home and First Bank recorded its mortgage. On June 24, 2020, Cynthia sold her home to Stanton Gulbrandsen for $250,000. At that time, Cynthia's mortgage was $225,000. Stanton assumed Cynthia's mortgage and gave Second Bank a second mortgage for $225,000. Second Bank did not record its mortgage. On October 12, 2020, Stanton sold the home to Derek Bolger for $275,000. Bolger took the property subject to the previous mortgages and executed a $275,000 mortgage to Third Bank. Third Bank recorded its mortgage on October 18, 2020. Third Bank knew of the Second Bank mortgage. -A piggyback mortgage:

In an assumption, the buyer is personally liable to the mortgagee.