When a construction loan is made and the seller's note has been subordinated:
A) the construction lender will have a junior position in the case of default
B) the seller will have a junior position in the case of default
C) the construction lender will have a senior position in the case of default
D) both b and c
Correct Answer:
Verified
Q4: The most likely reason for different lenders
Q5: 18-18.A construction loan commitment is:
A) a reserve
Q6: The speculator is interested in:
A) appreciation of
Q7: 18-10.When the developer puts up only a
Q8: The developer is interested in:
A) appreciation of
Q10: Land loans will seldom exceed:
A) 70-80% of
Q11: 18-12.In the event of a default,the development
Q12: 18-15.Payments made to municipalities or other local
Q13: Land loans are considered to be:
A) risky
B)
Q14: Rolling options are popular with:
A) speculators
B) residential
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