end of chapter 09 solutions - Chapter 9 Real Estate Finance The Laws and Contracts Test Problems 1 The element of an adjustable interest rate that is

end of chapter 09 solutions - Chapter 9 Real Estate Finance...

This preview shows page 1 - 3 out of 4 pages.

1 Chapter 9 Real Estate Finance: The Laws and Contracts Test Problems 1. The element of an adjustable interest rate that is the “moving part” is the: b. Index 2. Which of these aspects of a mortgage loan will be addressed in the note rather than in the mortgage? a. Prepayment penalty 3. A lender may reserve the right to require prepayment of a loan at any time they see fit through a(n): c. Demand clause 4. When a buyer of a property with an existing mortgage loan acquires the property without signing the note for an existing loan the buyer is acquiring the property: e. Subject to the mortgage 5. Which if these points in a mortgage loan would be addressed in the mortgage (possibly in the note as well)? d. Escrows 6. 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: d. Contract for deed. 7. Ways that a lender may respond to a defaulted loan without resorting to foreclosure include all of the following except: d. Accelerate the debt. 8. If the lender in a standard first mortgage wishes to foreclose cost effectively, it is crucial to have which clause in the mortgage: a. Acceleration clause 9. A common risk that frequently interferes with a lender’s efforts to work out a defaulted loan through either nonforeclosure means or foreclosure is: d. Bankruptcy. 10. The characteristics of a borrower than can be considered by a lender in a mortgage loan appreciation are limited by the: c. Equal Credit Opportunity Act.
Image of page 1