When borrowers pledge property as security for the debt, but retain possession it is called:
B. hypothecation
Usury laws are always set by:
A. the state
Interest is paid:
C. in arrears
When a mortgage is paid in full, the words of release of the debt is called:
D. the defeasance clause
The lender in a Deed of Trust situation is:
A. the beneficiary
All are names for a land contract except:
B. private agreement deed
The buyer in a land contract has:
D. equitable title
In Arizona what is the stated rate of interest that can be charged on a real property loan secured by a mortgage?
B. whatever is reasonable
Redemption is:
B. a chance for the borower to keep the property by paying the delingent debt
When the primary lender takes the property back on a Deed in Lieu of Foreclosure, what happens to the junior liens?
B. the junior liens continue to be a lien
Which is true regarding a Deed in Lieu of Foreclosure?
A. the lender must agree to accept it
In a land congtract, the seller is the:
B. lender
Loan origination fees are charged by lenders:
C. to cover expenses of a loan
In the title theory state, who has equitable title?
D. mortgagor
Naked title conveys:
B. without right of possession
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. 90days before the sale
A power of sale clause would be found in a:
D. trust deed
T/F
Arizona is a lien theory state
True
T/F
In a Deed of Trust, the lender is called the Trustee
False
T/F
FNMA is a private corporation under HUD regulatory control that establishes federal usury rates
False
T/F
A promissory note can be sold and assigned
True
T/F
A discount point lowers the monthly mortgage payment for only the first year.
False
T/F
Strict foreclosure means that the borrower's obligations are strictly enforced
False
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
T/F
When property is sold by the court, it is called a judicial foreclosure.
True
T/F
In a land contract the buyer does not receive the deed until the final payment is made
True
T/F
A non[disturbance clause means that the house will not be shown without first calling the seller
False
T/F
The Deed of Reconveyance is recorded when the Deed of Trust is paid in full
True
T/F
Equity is the fifference between the value of the property and the debt
True
T/F
Collateral is pledging property as security for debt without giving up possession.
False
T/F
Interest paid on June 1 is for the use of the money from June 1 through June 30
False
T/F
In a land contract, the forfeiture rules depends on the amount of money the buyer has paid
