Deck 34: Mortgages and Nonconsensual Liens

Question 1

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

Answer 1

False

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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 5

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

Question 6

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 7

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

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

Question 8

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

Question 9

A mortgagor's liability can terminate through foreclosure.

Question 10

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

Question 11

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

Question 12

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.

Question 13

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

Question 14

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 15

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 16

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

Question 17

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

Question 18

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

Question 19

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.

Question 20

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

Question 21

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 22

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 23

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 24

Explain deed of trust and installment contract.

Question 25

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 26

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 27

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 28

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 29

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

Question 30

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 31

What are the major types of nonconsensual liens?

Question 32

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