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Unformatted text preview: cause of loan defaults is due to a borrower unable to A. B. C. D. Pay the property taxes when due. Pay the mortgage payments when due. Pay the property insurance premium when due. Maintain the collateral. 8. A foreclosure will usually be initiated when A. B. C. D. A borrower has died. A borrower has lost his or her job. The value of the collateral has dropped below the balance of the loan. A borrower can no longer make payments, and the value of the collateral has dropped below the outstanding balance of the loan. Dynasty School (www.dynastySchool.com) 14-45 REAL ESTATE FINANCE
9. After an FHA–insured loan is foreclosed, any of the following may transpire, except A. B. C. D. 9. The FHA will reimburse the lender in full and in cash. The FHA will reimburse the lender in full and in debentures. The lender will secure title to the property and assign it to the FHA. The lender will secure title to the property, refurbish it and sell it. After a judicial foreclosure sale A. B. C. D. all rights held by the trustor are terminated The successful bidder gets fee title, free of any restrictions The trustor has a three-month right of reinstatement. The trustor has a one-year right of redemption 10. A trustee may initiate a foreclosure sale as a result of A. B. C. D. The provision of the California Business and Profession Code The applicable sections of the Civil Code. The power of sale contained in the deed of trust . The violation of the due-on-sale clause. Answers: 1–A, 2–C, 3–B, 4–B, 5–B, 6–D, 7–C, 8–C, 9–D, 10–C 14-46 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 15: REFINANCING OR NOT AND CHOOSING A LENDER CHAPTER 15: REFINANCING OR NOT AND CHOOSING A LENDER PREVIEW
There is a wide variety of loan types available to the broker for use in completing transactions. The general principle which governs is, “The greater the risk to the lender, the higher will he the interest, the shorter the maturity and the lower the ratio of loan to value.” And, as an auxiliary rule, “The better the property and creditworthiness of the borrower, the more benefits will accrue to borrower, with a wider range of loan plan choices. An indiv...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10