Flashcards in Chapter 9: Real Estate Finance Deck (20):
A land contract is:
for the purchase of property in which the seller becomes the buyer's lender.
A state in which a loan secured by the real property creates an encumbrance on title to the property, rather than title being held by the lender until the debt is fully retired, is known as:
a lien theory state.
In a tight money market one would generally find:
a buyers market.
Sean owns five parcels of property that he is willing to hypothecate for a loan to develop all the parcels. Sean will be required to execute a:
The mortgage market is made of the primary and __________ mortgage market.
The Federal Reserve normally affects the supply of money in circulation by all of the following: (name three)
1. buying or selling bonds.
2. adjusting the discount rate.
3. changing reserve requirements.
To slow down an escalating rate of inflation, the Federal Reserve can: (name three)
1. lower the prime rate.
2. buy government securities on the open market.
3. lower the reserve requirement of member banks.
A provision in a mortgage that prohibits a borrower from paying off a loan in full prior to the end of the specified term without penalty is known as:
a prepayment penalty clause.
Today, Fannie Mae's primary responsibility is to:
maintain an active secondary market for mortgages.
When a trustee's sale has been held, and the successful bidder is given a trustee's deed, the alienated homeowner has no: (name two)
1. further liability to the lender.
2. statutory right of redemption.
When obtaining financing for undeveloped land upon which the borrower intends to construct a house, he/she should make sure the loan has:
a subordination clause.
A first mortgage is defined as the:
mortgage that has been recorded ahead of all other mortgages.
The prime rate is established by:
A mortgage whose payment includes a share of the property taxes and hazard insurance in addition to principal and interest is known as a:
The period within which a mortgagor may reclaim ownership after foreclosure and sheriff's sale is known as the:
statutory period of redemption.
Construction loans are generally designed to:
provide high interest short-term funds to builders.
In a sheriff's sale, any excess money received from the sale beyond the lender's judgment and costs:
must be given to the foreclosed upon borrower.
The following are primary lenders, name three:
1. mortgage bankers.
3. mutual savings.
When a property secured by a deed of trust has been paid in full, the beneficiary will direct the trustee to execute a:
Deed of Reconveyance.