Deck 43: Real Estate Mortgages

Question 1

The rights of the mortgagee under the mortgage agreement may be assigned.

Answer 1

True

Question 2

Which of the following is true of foreclosures?

A) Foreclosure proceedings are the same throughout the country.
B) An officer of court is allowed to make the sale when a mortgage becomes due.
C) Unrecorded mortgages takes precedence over mechanic's lien.
D) The first mortgage always takes precedence over the cost of foreclosure and taxes.

Answer 2

B

Question 3

The first mortgage takes precedence over the cost of foreclosure and taxes.

Answer 3

False

Question 4

A mortgagor has the right to rents and profits from the property.

Question 5

A mortgagor has the right to redemption after default.

Question 6

Which of the following is true of a deed of trust?

A) The creditor may sell the property through an auction upon default.
B) The trustee becomes responsible for the payment mortgage upon default.
C) It conveys title to the property to a disinterested third-party.
D) The trustee holds the property in trust for the benefit of the debtor.

Question 7

A mortgagee normally retains possession of the property.

Question 8

A(n) _____ is an interest in real estate given to secure the payment of a debt.

A) assignment
B) consideration
C) mortgage
D) annuity

Question 9

Mortgages are interpreted according to the contract law rules.

Question 10

Which of the following best describes a lien?

A) It is an encumbrance or claim against property.
B) It is the interest paid on a mortgage.
C) It is a consideration given to the mortgager.
D) It is the title deed of the property mortgaged.

Question 11

Which of the following is true of governmental mortgage insurance?

A) The insurance lasts for two years after the mortgage period.
B) The Federal Housing Administration charges a higher rate of interest than a conventional mortgage.
C) The U.S. Department of Veterans Affairs offers mortgages for the general public.
D) The U.S. Department of Veterans Affairs offers lesser interest rates for those who served in active duty in the armed forces.

Question 12

Which of the following is true of mortgage?

A) Improvements cannot be mortgaged separate from the land.
B) The mortgagee normally retains possession of the property.
C) A person who gives a mortgage as a security for a debt is a mortgagee.
D) A mortgage constitutes the security of the debt.

Question 13

Explain any one duty of a mortgagor.

Question 14

If a mortgagor wishes to pay off the mortgage debt before the due date, the right must be reserved at the time the mortgage is given.

Question 15

A mortgagor's payment of the debt does not divest the lien of the mortgagee.

Question 16

A person who holds a mortgage as a security for a debt is a mortgagee.

Question 17

Which of the following is a right of a mortgagor?

A) Right to assign the mortgage
B) Right to deny foreclosure
C) Right to stop mortgage payments
D) Right to possession of property

Question 18

When a mortgage is assigned:

A) the assignee attains greater rights than the assignor had.
B) the assignor should require the assignee to produce an estoppel certificate.
C) the assignee should have the assignment recorded.
D) the last party to record an assignment has preference when there is more than one assignment.

Question 19

A mortgagee has the duty to pay taxes on the property mortgaged.

Question 20

Mortgages insured by the Federal Housing Administration require a larger down payment than conventional mortgages.