AMP Real Estate - Finance) 2025| 320
Questions with 100% Correct Verified
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Mortgage lenders typically look at several main risk factors, including:
A. Willingness to repay
B. Marital status
C. Pets
D. Rental history
D. Rental history
Mortgage lends typically look at several risk factors, including:
A. Marital status
B. Pets
C. Value of collateral
D. Rental history
D. Rental history
Mortgage lenders typically look at several main risk factors, including:
A. Martial status
B. Pets
C. Rental history
D. Value of reserves
D. Value of reserves
In carry back or "take back" financing, who acts like the bank?
,The seller
Which of the following categories of financing do private individuals
provide? A. Seller financing
B. Private investment
C. Nonconforming assumable loans
D. All of the above
A. Seller financing
Escalation clause
Allows for an increase in interest rate
What is the escalation clause also known as?
Escalator clause
Personal property clause
In a "package mortgage" that covers real and personal property, the personal property should
be listed in a personal property clause. Also, any personal property which is attached to the
real property also becomes security for the loan.
Condemnation clause
Requires owner to use payment for property to pay off loan
Late penalty clause
If you pay late what the penalty is
Alienation clause
If transfer of ownership (deed away) lender will call full amount of loan due.
What is an alienation clause also known as?
Due-on-sale clause
,Insurance and tax covenant
Keep insured at least for amount of loan and keep property taxes paid
Budget mortgage
Taxes and insurance are included in payments
Mortgage default clause
If lien holder forecloses, security for other liens disappears
Covenant against removal
Cannot remove any of bank's security
Covenant against waste
Cannot destroy any of property pledged
Partial release clause
Allows release of one property with additional principal paid
Subordination clause
Changes the priority of liens, determined by recording. The 1st lender takes a lower position
Exculpatory clause
Limits the borrower's personal liability
What is an exculpatory clause also known as?
Nonrecourse clause
Prepayment clause
Allows the debt to be paid off early usually without any penalty
Assumption clause
, New homeowner assumes the mortgage, purchaser agrees to be primarily responsible
subject to original borrower being responsible if purchaser defaults
Defeasance clause
Defeated the debt (paid it off). Satisfaction is rendered.
Receiver clause
Who manages foreclosed commercial property
Assignment clause
What happens to profit/rent
Power of sale clause
Allows lender to sell property without going to Court
Acceleration clause
Allows bank to speed up payment schedule when payments aren't made
Foreclosure
A legal procedure in which property pledged is sold to pay off the debt.
Judicial sale foreclosure
Have to go to Court for property to be ordered sold
Non-judicial foreclosure
Lender considered to have ownership so they have the power to sale
Friendly foreclosure
Lender allows borrower to deed property back to them to avoid foreclosure
Strict foreclosure
Borrower has no rights after foreclosure
Questions with 100% Correct Verified
Answers
Mortgage lenders typically look at several main risk factors, including:
A. Willingness to repay
B. Marital status
C. Pets
D. Rental history
D. Rental history
Mortgage lends typically look at several risk factors, including:
A. Marital status
B. Pets
C. Value of collateral
D. Rental history
D. Rental history
Mortgage lenders typically look at several main risk factors, including:
A. Martial status
B. Pets
C. Rental history
D. Value of reserves
D. Value of reserves
In carry back or "take back" financing, who acts like the bank?
,The seller
Which of the following categories of financing do private individuals
provide? A. Seller financing
B. Private investment
C. Nonconforming assumable loans
D. All of the above
A. Seller financing
Escalation clause
Allows for an increase in interest rate
What is the escalation clause also known as?
Escalator clause
Personal property clause
In a "package mortgage" that covers real and personal property, the personal property should
be listed in a personal property clause. Also, any personal property which is attached to the
real property also becomes security for the loan.
Condemnation clause
Requires owner to use payment for property to pay off loan
Late penalty clause
If you pay late what the penalty is
Alienation clause
If transfer of ownership (deed away) lender will call full amount of loan due.
What is an alienation clause also known as?
Due-on-sale clause
,Insurance and tax covenant
Keep insured at least for amount of loan and keep property taxes paid
Budget mortgage
Taxes and insurance are included in payments
Mortgage default clause
If lien holder forecloses, security for other liens disappears
Covenant against removal
Cannot remove any of bank's security
Covenant against waste
Cannot destroy any of property pledged
Partial release clause
Allows release of one property with additional principal paid
Subordination clause
Changes the priority of liens, determined by recording. The 1st lender takes a lower position
Exculpatory clause
Limits the borrower's personal liability
What is an exculpatory clause also known as?
Nonrecourse clause
Prepayment clause
Allows the debt to be paid off early usually without any penalty
Assumption clause
, New homeowner assumes the mortgage, purchaser agrees to be primarily responsible
subject to original borrower being responsible if purchaser defaults
Defeasance clause
Defeated the debt (paid it off). Satisfaction is rendered.
Receiver clause
Who manages foreclosed commercial property
Assignment clause
What happens to profit/rent
Power of sale clause
Allows lender to sell property without going to Court
Acceleration clause
Allows bank to speed up payment schedule when payments aren't made
Foreclosure
A legal procedure in which property pledged is sold to pay off the debt.
Judicial sale foreclosure
Have to go to Court for property to be ordered sold
Non-judicial foreclosure
Lender considered to have ownership so they have the power to sale
Friendly foreclosure
Lender allows borrower to deed property back to them to avoid foreclosure
Strict foreclosure
Borrower has no rights after foreclosure
