RLE 83 Final Prep Ch 7

Front

To carry back a junior loan implies that the

Back

sellers are financing a part of their equity.

Front

What will a senior lender usually do regarding a junior lender when a borrower defaults?

Back

Give the junior lender a chance to make the delinquent payments.

Front

All of the following clauses can be included in a junior loan instrument, except a(n)

Back

assertion of first lien position.

Front

A clause in a junior loan that allows a borrower to replace an existing senior loan without disturbing the status of the junior loan is known as a

Back

lifting clause.

Front

Why would sellers be willing to carry back junior financing at lower-than-market interest levels?

Back

To sell their property.