VII Finance

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  1. In the title theory state:

    A. The mortgagee retains legal title
    B. Legal title is held by a neutral third party
    C. The mortgagor retains legal title
    D. The borrower has no rights of ownership
    A. The mortgagee retains legal title
    (this multiple choice question has been scrambled)
  2. Arizona is:

    A. a controlled interest state
    B. a strict foreclosure starte
    C. a title theory state
    D. a lien theory state
    D. a lien theory state
    (this multiple choice question has been scrambled)
  3. The promissory note is not:

    A. a title theory state
    B. signed by the borrower
    C. the hypothecation
    D. a controlled interest rate
    C. the hypothecation
    (this multiple choice question has been scrambled)
  4. When borrowers pledge property as security for the debt, but retain possession it is called:

    A. assignment
    B. acceleration
    C. alienation
    D. hypothecation
    D. hypothecation
    (this multiple choice question has been scrambled)
  5. Usury laws are always set by:

    A. the local county government
    B. the state
    C. the Board of Bankers
    D. the federal government
    B. the state
    (this multiple choice question has been scrambled)
  6. Interest is paid:

    A. in arrears
    B. in advance
    C. at the maturity of the loan
    D. at intervals set by the government
    A. in arrears
    (this multiple choice question has been scrambled)
  7. When a mortgage is paid in full, the words of release of the debt is called:

    A. the usury clause
    B. the acceleration clause
    C. the release clause
    D. the defeasance clause
    D. the defeasance clause
    (this multiple choice question has been scrambled)
  8. The lender in a Deed of Trust situation is:

    A. the trustee
    B. the beneficiary
    C. the trustor
    D. mortgagor
    B. the beneficiary
    (this multiple choice question has been scrambled)
  9. All are names for a land contract except:

    A. agreement for sale
    B. private agreement deed
    C. contractor for deed
    D. installment sale
    B. private agreement deed
    (this multiple choice question has been scrambled)
  10. The buyer in a land contract has:

    A. the deed as long as he doesn't miss a payment
    B. borrowed through the local bank
    C. equitable title
    D. has no redemption period when in default
    C. equitable title
    (this multiple choice question has been scrambled)
  11. In Arizona what is the stated rate of interest that can be charged on a real property loan secured by a mortgage?

    A. 21%
    B. whatever is based on the Consumer Price Index
    C. curent rate set by the federal government
    D. whatever is reasonable
    D. whatever is reasonable
    (this multiple choice question has been scrambled)
  12. Redemption is:

    A. a period of time when the borrower can change their mind
    B. a chance for the borrower to save his credit score
    C. a chance for the borower to keep the property by paying the delingent debt
    D. when the lender takes the property to cover the debt
    C. a chance for the borower to keep the property by paying the delingent debt
    (this multiple choice question has been scrambled)
  13. When the primary lender takes the property back on a Deed in Lieu of Foreclosure, what happens to the junior liens?

    A. the junior liens are no longer valid
    B. the lender takes responsibility for a junior liens
    C. the junior liens become personal non-secured loans
    D. the junior liens continue to be a lien
    D. the junior liens continue to be a lien
    (this multiple choice question has been scrambled)
  14. Which is true regarding a Deed in Lieu of Foreclosure?

    A. it is a deed that is given to the buyer in a foreclosure sale
    B. it erases all junior loans
    C. the lender must agree to accept it
    D. it is illegal in Arizona
    C. the lender must agree to accept it
    (this multiple choice question has been scrambled)
  15. In a land congtract, the seller is the:

    A. buyer
    B. beneficiary
    C. lender
    D. vendee
    C. lender
    (this multiple choice question has been scrambled)
  16. Loan origination fees are charged by lenders:

    A. to cover expenses of a loan
    B. to pay the closing costs
    C. to pay the title company charges
    D. to pay for the ALTA Policy
    A. to cover expenses of a loan
    (this multiple choice question has been scrambled)
  17. In the title theory state, who has equitable title?

    A. mortgagor
    B. lender
    C. seller
    D. mortgagee
    A. mortgagor
    (this multiple choice question has been scrambled)
  18. Naked title conveys:

    A. with legal title
    B. with equitable title
    C. without right of possession
    D. with the right of possession
    C. without right of possession
    (this multiple choice question has been scrambled)
  19. A property that has a loan secured by a Deed of Trust goes into default. The lender has instructed the Trustee to foreclose on the property. What is the redemption time for the borrower to stop the foreclosure?

    A. 90 days before the sale
    B. 120 days before the sale
    C. 60 days before the sale
    D. 90 days afgter the sale
    A. 90days before the sale
    (this multiple choice question has been scrambled)
  20. A power of sale clause would be found in a:

    A. contract for deed
    B. trust deed
    C. promissory note
    D. mortgage
    B. trust deed
    (this multiple choice question has been scrambled)
  21. T/F

    Arizona is a lien theory state
    True
  22. T/F

    In a Deed of Trust, the lender is called the Trustee
    False
  23. T/F

    FNMA is a private corporation under HUD regulatory control that establishes federal usury rates
    False
  24. T/F

    A promissory note can be sold and assigned
    True
  25. T/F

    A discount point lowers the monthly mortgage payment for only the first year.
    False
  26. T/F

    Strict foreclosure means that the borrower's obligations are strictly enforced
    False
  27. T/F

    In order to avoid foreclosure in a Deed of Trust, the borrower can pay the amount in default with any late charges during the redemption period
    True
  28. T/F

    When property is sold by the court, it is called a judicial foreclosure.
    True
  29. T/F

    In a land contract the buyer does not receive the deed until the final payment is made
    True
  30. T/F

    A non[disturbance clause means that the house will not be shown without first calling the seller
    False
  31. T/F

    The Deed of Reconveyance is recorded when the Deed of Trust is paid in full
    True
  32. T/F

    Equity is the fifference between the value of the property and the debt
    True
  33. T/F

    Collateral is pledging property as security for debt without giving up possession.
    False
  34. T/F

    Interest paid on June 1 is for the use of the money from June 1 through June 30
    False
  35. T/F

    In a land contract, the forfeiture rules depends on the amount of money the buyer has paid
    True
Author
ID
160602
Card Set
VII Finance
Description
AZ Real Estate
Updated
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