Deck 12: Mortgages and Nonconsensual Liens

Question 1

Under statutes enacted in many states,a mortgagor has one last chance to recover his property,even after foreclosure.This is known as the right of:

A)redemption.
B)subrogation.
C)exoneration.
D)acceleration.
E)redlining.

Answer 1

A

Question 2

A mortgage is a security in which the collateral is a piece of land.

Answer 2

True

Question 3

The acceleration clause provides that if a debtor should default on any particular payment,the entire principal,but not the interest,will become due immediately at the lender's option.

Answer 3

False

Question 4

To shut off the owner's interest in property and sell it upon default is known as foreclosure.

Question 5

Recording a lien against real estate does not give the lienor an automatic right to the property if the debt remains unpaid.

Question 6

A property can be sold without paying off the mortgage if the mortgage is assumed by the new buyer,who agrees to pay the seller's debt.

Question 7

The refusal of lenders to make loans on property in low-income neighborhoods or impose stricter mortgage terms when they do make loans there is known as:

A)cream-skimming.
B)redlining.
C)exoneration.
D)blockbusting.
E)subrogation.

Question 8

The official filing of a legal document,a mortgage,or a deed is known as recording.

Question 9

Attachment liens and judgment liens are obtained by the creditor with the debtor's consent.

Question 10

A mortgagor's liability can terminate through foreclosure.

Question 11

A _____ is a means of securing a debt with real estate.

A)bequest
B)bailment
C)mortgage
D)buyback
E)pledge

Question 12

The deed of trust requires only two parties: the borrower and the lender.

Question 13

Which of the following refers to a situation in which the creditor takes the collateral,discharges the debtor,and has no right to seek any deficiency?

A)Exoneration
B)Blockbusting
C)Subrogation
D)Judicial sale
E)Strict foreclosure

Question 14

The refusal of lenders to make loans on property in low-income neighborhoods is known as redlining.

Question 15

A strict foreclosure gives the creditor a right to seek deficiencies from the debtor.

Question 16

A mortgage between parties is invalid if it is not recorded.

Question 17

To shut off the owner's interest in property and sell it upon default is known as:

A)redlining.
B)recording.
C)attachment.
D)foreclosure.
E)redemption.

Question 18

After default,the mortgagor has no right to exercise his equity of redemption.

Question 19

The due-on-sale clause prevents assumption of a mortgage.

Question 20

The party who holds a mortgage is known as the mortgagor.

Question 21

An)_____ gives the right to continue to keep the goods on which work has been performed or for which materials have been supplied until the owner pays for the labor or materials.

A)judgment lien
B)mechanic's lien
C)tax lien
D)possessory lien
E)attachment lien

Question 22

Which of the following clauses permits the mortgagee to sell the mortgaged property at public auction without going to court?

A)Strategic foreclosure
B)Power of attorney
C)Power of sale
D)Strict foreclosure
E)Acceleration

Question 23

Under the _____,the purchaser takes possession and agrees to pay the seller over a period of years.Until the final payment,title belongs to the seller.

A)land contract
B)right of redemption
C)subrogation
D)exoneration
E)acceleration clause

Question 24

An)_____ is a judicial lien imposed to preserve property during litigation.

A)tax lien
B)attachment lien
C)judgment lien
D)mechanic's lien
E)possessory lien

Question 25

What are the major types of nonconsensual liens?

Question 26

Once filed,which of the following liens takes priority over all subsequently arising liens?

A)Possessory lien
B)Tax lien
C)Attachment lien
D)Judgment lien
E)Mechanic's lien

Question 27

Which of the following acts requires that the appropriate federal financial supervisory agencies encourage regulated financial institutions to meet the credit needs of the local areas in which they are chartered,consistent with safe and sound operation?

A)Home Mortgage Disclosure Act
B)Fair Housing Act
C)Equal Credit Opportunity Act
D)Community Reinvestment Act
E)Financial Institutions Reform,Recovery and Enforcement Act

Question 28

Which of the following is a type of mortgage where title to the property is nominally in a trustee,who sells if the buyer defaults?

A)Deed of subrogation
B)Deed of exoneration
C)Deed of perfection
D)Deed of sale
E)Deed of trust

Question 29

Judicial sale and power of sale are the two types of sale used in:

A)foreclosure.
B)attachment.
C)perfection.
D)exoneration.
E)subrogation.

Question 30

Which of the following act preempts state laws and upholds the validity of due-on-sale clause?

A)Ashurst-Sumners Act
B)Celler-Kefauver Act
C)Esch-Cummins Act
D)Dingell-Johnson Act
E)Garn-St.Germain Depository Institutions Act

Question 31

Explain deed of trust and installment contract.

Question 32

To qualify for an)_____,the claimant must file a sworn statement describing the work done,the contract made,or the materials furnished that permanently improved the real estate.

A)attachment lien
B)judgment lien
C)mechanic's lien
D)possessory lien
E)tax lien