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Question
Foreclosure is considered the ultimate recourse of the lender because it allows the lender to bring about sale of the property to recover the outstanding indebtedness. All of the following statements regarding foreclosure are true EXCEPT:
A. Foreclosure is a costly process for all parties involved.
B. Only those claimants who are properly notified and engaged in the foreclosure suit can lose their claims to the property.
C. When a lender forecloses on a property, it extinguishes all superior liens, bringing about a free and clear sale of the property. .
D. The net recovery by a lender from a foreclosed loan seldom exceeds 80 percent of the outstanding loan balance and commonly is much less than this amount.
Answer
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Related questions
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Which of the following types of direct co-ownership combines single person ownership with tenancy in common?
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Partnership
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Which of the following types of direct co-ownership is a form of joint tenancy for husband and wife created by marriage that protects each spouse from liens arising from either spouse alone?
A. Tenancy in common
B. Tenancy by the entirety
C. Condominium
D. Tenancy at Will
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A lien is an interest in real property that serves as security for an obligation. Which of the following is an example of a general lien?
A. Property tax and assessment lien
B. Mortgage lien
C. Lien arising from a court judgment unrelated to ownership of the property
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While leasehold interests are considered estates, they differ from freehold estates in all of the following respects EXCEPT:
A. Leasehold estates are limited in time.
B. The right of disposition is diminished with a leasehold estate.
C. Leasehold estates are not titled interests.
D. Leasehold estates are possessory interests
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Suppose an older homeowner lives adjacent to an expanding university that is interested in acquiring her residence for future university use. To allow the homeowner to continue to retain all rights of exclusive possession, use, and enjoyment during her lifetime, yet provide the university with the right of disposition, the university may want to purchase a(n):
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Which of the following types of ownership estates is the most complete bundle of rights, and therefore carries the greatest value?
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Q:
Considered a fundamental pricing metric in commercial real estate markets, the ratio of a propertys annual net income to its market value is more commonly referred to as a(n):
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Q:
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Q:
By the fourth quarter of 2015, U.S. households had accumulated $12.5 trillion in housing equity, which represents about 14 percent of their net worth. What proportion of U.S. households own their home?
A. one-third
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Q:
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B. the riskiness of the expected cash flows of an income-producing property
C. the timing of the expected cash flows of an income-producing property
D. the cost of financing the purchase of a property
Q:
An example of a real estate asset that trades in the public debt market is:
A. real property
B. real estate operating companies
C. equity REITs
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Q:
If we desire to classify land by its use, land that does not include any improvements to the land would be categorized as:
A. Raw land
B. Building site
C. Developed land
D. Property infrastructure
Q:
Externalities can play an important role in determining a propertys price, either by adding value through positive externalities or by diminishing value through negative externalities. Which of the following is most likely to be considered a negative externality?
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B. Quality neighborhood schools
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Q:
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A. Statute of Frauds
B. doctrine of constructive notice
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Q:
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B. Easement of necessity
C. Easement by estoppel
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Q:
The type of deed offered by the grantor is communicated through a phrase such as does herby grant, bargain, sell and convey unto . . . This clause is referred to as the:
A. recital of consideration
B. words of conveyance
C. covenant
D. habendum clause
Q:
A deed is a special form of written contract used to convey a permanent interest in real property. Unlike most contracts, a deed requires:
A. both parties to be legally competent and of legal majority age.
B. only the grantee to be legally competent and of legal majority age.
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Q:
Which of the following leasehold estates best describes the situation in which a tenant who previously occupied a property under a legitimate leasehold interest refuses to vacate?
A. Tenancy for years
B. Tenancy at will
C. Periodic tenancy
D. Tenancy at sufferance
Q:
Since an easement is a non-possessory interest, it is important to understand the right of disposition that is associated with it. In which of the following types of easements is the right of disposition claimed as part of the easement?
A. Implied easement
B. Easement in gross
C. Negative easement appurtenant
D. Positive easement appurtenant
Q:
When multiple individuals have use of a property, but their interests are not simultaneous, this type of co-ownership is referred to as a:
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Timeshare
Q:
In a mortgage agreement, the borrower conveys to the lender a security interest in the mortgage property. The lender, i.e. the individual who receives the mortgage claim, is known as the:
A. broker
B. mortgagor
C. agent
D. mortgagee
Q:
Most Adjustable Rate Mortgage (ARM) loans have been marketed with a temporarily reduced interest rate commonly referred to as a:
A. rate cap
B. teaser rate
C. payment cap
D. prepayment rate
Q:
A significant number of mortgage loans use adjustable interest rates, in which the interest rate of the loan is tied to an index rate that fluctuates over time. For income-producing property, the most common index rate is the:
A. one-year U.S. Treasury constant maturity rate
B. prime rate
C. London Interbank Offered Rate (LIBOR)
D. cost-of-funds index
Q:
Analysis of a subject propertys pro forma reveals that its fifth year net operating income (NOI) is projected to be $100,282 (you can assume that this cash flow occurs at the end of the year). If you estimate the projected rental growth rate for the property to be 3% per year and the going-out capitalization rate in year five to be 10%, determine the net sale proceeds the current owner of the property would receive if he were to sell the property at the end of year five and incur selling expenses that amounted to $58,300.
A. $944,520.00
B. $974,610.00
C. $1,002,820.00
D. $1,032,910.00
Q:
Suppose that examination of a pro forma reveals that the fifth year net operating income (NOI) for an income producing property that you are analyzing is $138,446 (you can assume that this cash flow occurs at the end of the year). If you estimate the projected rental growth rate for the property to be 5% per year, determine the projected sale price of the property at the end of year five if the going-out capitalization rate is 9%.
A. $988,900.00
B. $1,465,037.00
C. $1,538,289.00
D. $1,615,203.00
Q:
Suppose that an income producing property is expected to yield cash flows for the owner of $10,000 in each of the next five years, with cash flows being received at the end of each
period. If the opportunity cost of investment is 12% annually and the property can be sold for $100,000 at the end of the fifth year, determine the value of the property today.
A. $36, 047.76
B. $56,742.69
C. $83,333.33
D. $92,790.45