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Unformatted text preview: satisfied. Full Payment by the Debtor – Signified by cancellation of the note and issuance of the reconveyance deed or satisfaction of mortgage. The lien is removed from the property when the release instrument is recorded. Foreclosure Sale – If the debtor fails to pay, foreclosure is accomplished either out of court (no deficiency judgment) or in court (deficiency judgment possible except in the case of most purchase money trust deeds). LIEN PRIORITIES
Liens take precedence usually in the order of recordation time, unless modified by a subordination clause or by operation of law, as in the case of a mechanics lien or a judgment lien. Legal Notice – The concept of notice is an important element in establishing priority. It can be: • • Actual notice (express or implied). Constructive notice (recordation or possession). Tax liens – Taxes and assessments are usually on a par with each other and take priority over other liens including a trust deed or mortgage. Form 8-1: Note Secured By Deed Of Trust Dynasty School (www.dynastySchool.com) 8-39 REAL ESTATE FINANCE 8-40 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 8: FINANCING INSTRUMENTS
1. A person who is an innocent purchaser of a negotiable note for value without knowledge of any defect is customarily called: A B C D. 2. A holder in due course An assignor A receiver in trust An endorser in blank A fictitious deed of trust is: A. B. C. D. Trust deed recorded against a single title to real property Forged trust deed It does not cite a specific property Recorded form of trust deed referred to in other trust deeds subsequently recorded in that county 3. Reinstatement under a trust deed is possible: A. B. C. D. Up to 5 business days prior to sale Anytime prior to sale Within 3 months after sale Up to 1 year after sale depending on sale proceeds 4. A note and mortgage requires a borrower to protect the lender by paying all of the following, except: A. B. C. D. Property taxes Life insurance premiums for borrower Hazard insurance premiums Principal and interest payments 5. A trust deed that is in default may be foreclosed: A. B....
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- Spring '10