Q&A Hero

Q: A mortgage can be foreclosed judicially.

Q: Upon default by the borrower under a deed of trust, the trustor issues a notice of default.

Q: A deed of trust lien, when paid in full, is released by the recording of a reconveyance deed.

Q: The borrower receives naked title under a deed of trust.

Q: In a real estate transaction financed with a deed of trust, the grantee on the deed of trust is the borrower.

Q: The funds for a loan secured by a deed of trust are supplied by the beneficiary.

Q: In a real estate transaction financed with a deed of trust, the real property is conveyed by the deed of trust.

Q: The borrower under a deed of trust is called the beneficiary.

Q: A deed of trust can never be foreclosed judicially.

Q: A trust deed can be used to secure a mortgage.

Q: One of the major differences between a regular mortgage and a deed of trust isa. a mortgage hypothecates personal property.b. a deed of trust must be recorded.c. the redemption period allowed.d. there is no difference.

Q: When a person signs a note with no guarantee to the person receiving it, he is said to be signing it a. with recourse. b. without recourse. c. in blank. d. jointly and severally.

Q: After a trustee's sale has been held and the property goes to the highest bidder, in most states the original trustor has a. 21 days to pay off the loan balance. b. 90 days equity of redemption. c. one year to redeem the property. d. no recourse.

Q: Under a deed of trust on real property, the trustee is a. the owner of record of the property covered by the deed of trust. b. empowered to foreclose, upon notice of default, by a trustee's sale of the property. c. the equitable owner of the property. d. the holder of the grant deed.

Q: A borrower defaults on a deed of trust loan. Before the lender can foreclose, the lender must a. offer to modify the loan terms to allow the borrower to catch up. b. appoint a trustee if the deed of trust is of the automatic trustee form. c. notify the borrower, trustee and all interested parties of the default. d. advertise the sale several weeks in advance and perform the sale himself, on the site of the property securing the loan.

Q: The beneficiary's right, upon default, to take physical possession and collect income generated by the property is called a. assignment of rents. b. reconveyance. c. power of sale. d. the trustee has the right, not the beneficiary.

Q: When default is declared on a loan secured by deed of trust, which of the following is true? a. The trustee must sell the property at a private sale. b. The successful bidder at the trustee's sale receives a trustee's deed at the time of sale. c. The defaulting borrower has a one year period of redemption after the trustee's sale. d. After a year, the successful bidder at the trustee's sale receives a trustee's deed.

Q: Who must sign the reconveyance of a deed of trust? a. Beneficiary b. Trustor c. Trustee d. Grantee

Q: A deed for reconveyance would be signed by the a. beneficiary. b. trustor. c. trustee. d. grantee.

Q: Upon payment of the debt secured by a deed of trust, the a. trustor issues a deed for reconveyance. b. grant deed is issued to the trustee. c. trustee issues a release deed for reconveyance. d. trustor now has equitable title.

Q: Under a deed of trust, reconveyance is issued by the a. beneficiary. b. trustor. c. trustee. d. borrower.

Q: When a debt secured by a deed of trust is paid off, naked legal title reverts to the borrower from the a. mortgagee. b. trustor. c. beneficiary. d. trustee.

Q: A deed of trust conveys naked title to the a. beneficiary. b. trustor. c. trustee. d. escrow officer.

Q: The trustee of a deed of trust a. may be the beneficiary. b. may bid at the foreclosure sale. c. has naked title. d. always knows of his appointment.

Q: With regard to a deed of trust, the trustee a. can be the beneficiary. b. receives recorded title. c. receives equitable title. d. receives naked title.

Q: When a loan is secured by deed of trust, the promissory note is held by the a. beneficiary. b. trustor. c. trustee. d. grantee.

Q: When a property is financed by means of a deed of trust, to whom are the payments made? a. Beneficiary b. Trustor c. Trustee d. Grantee

Q: The borrower under a deed of trust arrangement is called the a. trustor. b. beneficiary. c. trustee. d. holder in due course.

Q: A trustor's relationship to a beneficiary is most nearly the same as a a. grantor to a grantee. b. beneficiary to a trustee. c. buyer to a seller. d. mortgagor to a mortgagee.

Q: Who is the trustor in a deed of trust? a. Borrower b. Lender c. Grantor d. Vendor

Q: The borrower under a deed of trust is called the a. trustor. b. beneficiary. c. trustee. d. grantor.

Q: The instrument which conveys naked title to a trustee is the a. notice of default. b. reconveyance deed. c. guardian's deed. d. trust deed.

Q: One of the main differences between a regular mortgage and a deed of trust is a. the number of parties. b. rights of possession. c. recording. d. ownership.

Q: A newly recorded trust deed a. conveys the entire estate to the grantee. b. always allows a deficiency judgement. c. establishes a voluntary lien. d. conveys title superior to a quitclaim deed.

Q: A trust deed can be used for all of the following EXCEPT a. transfer of title. b. hypothecate property. c. secure a note. d. secure a mortgage.

Q: A deed given as security for the loan against real estate is known as a. a trust deed. b. illegal consideration. c. usury. d. hypothecated.

Q: A neutral third party would be found in a. a regular mortgage. b. an equitable mortgage. c. a deed of trust. d. a land sale contract.

Q: When a property sells at a foreclosure sale for less than the debt, a(n) ______________________________ may allow the lender to proceed against the borrower's other unsecured assets.

Q: A(n) ____________________ foreclosure does not go to court and is not heard by a judge.

Q: When a lender voluntarily takes a lower position than he would normally be entitled to the process is known as ____________________.

Q: Any mortgage with a lower priority than the first mortgage is known as a ____________________ mortgage.

Q: A(n) ____________________ clause allows the lender to call the entire balance due if the borrower sells or conveys the mortgaged property.

Q: The covenant of _________________________ requires the borrower to keep the mortgaged property in good condition.

Q: In ____________________ theory states, the mortgage gives only a lien right to the lender and the borrower retains title.

Q: ____________________ means the borrower retains the right to possess and use the property while it serves as collateral.

Q: A clause that allows the lender to demand immediate payment of the entire balance on a note if the borrower misses the obligatory payments is known as a(n) ____________________ clause.

Q: In a promissory note the entity to which the debt is owed is known as the ____________________ or ____________________.

Q: A partial release would allow a developer to release some of the mortgaged property from the mortgage collateral.

Q: A deed of trust differs from a traditional mortgage in that it is a three-party agreement.

Q: In the covenant of good repair the borrower promises not to remove or demolish any buildings or improvements.

Q: A deed in lieu of foreclosure relieves the lender of foreclosing and waiting out any required redemption period.

Q: A power of sale in a mortgage gives the lender the power to take ownership and sell the mortgaged property without taking the issue to court.

Q: Strict foreclosure is a nonjudicial foreclosure without a judicial sale and usually without a statutory redemption period.

Q: At the same time that a lawsuit is filled with the court, a notice of lis pendens is also filed with the court.

Q: A nonjudicial foreclosure does not go to court and is not heard by a judge.

Q: In a foreclosure, a surplus money action would be filed by the junior mortgage holder.

Q: A lawsuit, filed by the lender, requesting that a borrower's interest in his property be cut off is called a defeasance suit.

Q: A mortgagee allows a clause in his contract stating that another lender's interest will be allowed to take precedence over his own. This clause is a subordination clause.

Q: The mortgage holding the highest priority would be the one that is recorded first.

Q: Mogan and David buy a furnished house. They assume and agree to the existing mortgage. They will need a note and mortgage.

Q: A borrower wants provisions written into his mortgage whereby the lender will remove a portion of the property from the mortgage upon partial repayment of the loan. The borrower would ask for an alienation clause.

Q: That portion of a mortgage that requires the borrower to preserve and maintain the pledged property is called the covenant of good repair.

Q: Provisions for the defeat of a mortgage are found in the defeasance clause.

Q: To use property as security for a debt without giving up possession is called hypothecation.

Q: An acceleration clause most nearly means to speed up the payments.

Q: In a promissory note, the term "principal" refers to the borrower.

Q: A legal description of the property typically appears in a promissory note.

Q: A mortgagor signs a deed conveying title to the mortgagee, leaving the mortgagee without recourse. This is an example of a. deed of surrender. b. deed in lieu of foreclosure. c. satisfaction of mortgage. d. defeasance.

Q: The right, which allows the mortgagor to regain his property following a mortgage foreclosure, is known as a. right of redemption. b. due on sale. c. satisfaction of mortgage. d. defeasance.

Q: If a foreclosed property has sold for less than the loan amount, the difference between the indebtedness and the sale price of the real estate at the foreclosure sale is called the a. net price. b. deficit. c. net market value. d. deficiency.

Q: When a clause in a mortgage allows the lender to proceed against a borrower's other assets if the foreclosure sale does not satisfy the debt, the result is called a a. statutory redemption. b. deficiency judgment. c. equity of redemption. d. foreclosure redemption.

Q: The right of the mortgagor to reclaim his property upon payment in full of the obligation is a. reconveyance. b. redemption. c. recapture. d. right of deficiency.

Q: Betty is six months behind on her mortgage payments. Foreclosure by public auction has been ordered. The sale has not been completed. Betty may redeem her property by paying the a. last six months payments. b. full amount of the loan balance. c. loan balance plus accrued interest. d. loan balance, accrued interest and the accumulated cost of the foreclosure action and sale.

Q: Which of the following requires a public sale? a. Strict foreclosure b. Entry and possession c. Deed in lieu of foreclosure d. Power of sale

Q: If an owner of a single-family residence defaults on his mortgage, it can a. not be foreclosed if an ALTA title insurance policy insured it. b. be foreclosed on. c. not be foreclosed on if the mortgage went into effect before 1978. d. only be foreclosed on if an ALTA title insurance policy insured it.

Q: A beneficiary allows a clause in his contract stating that another lender's interest will be allowed to take precedence over his at some later date. This clause is known as a. a subrogation clause. b. a rogata clause. c. a subordination clause. d. hypothecation.

Q: Who benefits the most by the inclusion of a subordination clause in a mortgage? a. Borrower b. Lender c. Selling broker d. Trustee

Q: Which of the following claims against a real property interest would be the first to be satisfied? a. First trust deed b. Second trust deed c. Property taxes d. Newly filed IRS tax lien

Q: A second mortgage is a. a seller's lien. b. a smaller loan. c. paid off 50/50 with a first mortgage at foreclosure. d. junior to a superior mortgage lien.

Q: Unless there is a specific agreement to the contrary, the mortgage having first priority will be the a. mortgage first recorded. b. mortgage for the highest amount. c. original construction loan. d. mortgage with the earliest signature date.