Aceable Finance 12-13 Loan Process and Foreclosure

Seller Sandra is responsible for 20 days of prorated items in her closing month of September. We can infer that Sandra's sale closed on:

• September 20

• September 19

• September 21

• September 30

Which of these shows the true cost of a loan and helps consumers compare loans "apples to apples" when they comparison shop?

• APR and financing charge

• credit score and closing costs

• tax-deductible interest and title fees

• broker commission and commission split

All of these might result in a foreclosure, EXCEPT:

• transferring the note to another party

• being delinquent in payments

• failure to pay property taxes

• failure to maintain the mortgaged property to a standard

What are the two primary categories of foreclosure?

• judicial and nonjudicial

• judicial and administrative

• nonjudicial and legal

• foreclosure and non-foreclosure

Which of the following would decrease the amount the seller receives at closing?

• a debit to the seller

• a credit to the seller

• an accrued item

• a prepaid item

What is one downside of having debt forgiven as part of a foreclosure proceeding?

• The forgiven debt will be taxed as income.

• The borrower will face a mandatory 15-year ban on financing a home.

• The borrower could still be sued for the forgiven debt later.

• The right of recovery is waived.

What does the power of sale clause do?

• allows a lender to take possession of a property without court approval if a buyer defaults on their loan

• requires a borrower to pay back their loan in full if they sell the property

• allows a borrower to pass a property on to a family member without paying a tax penalty

• gives a borrower the right to judicial review before foreclosure proceedings commence

Which of these statements is TRUE about Fannie Mae's Desktop Underwriter (DU)?

• It doesn't consider FICO scores (credit scores).

• Costs more to get approved

• Rejects a borrower if they don't qualify

• Is much harder to get loan approval

What is one reason a borrower in distress might choose to do a deed in lieu of foreclosure?

• It avoids deficiency judgments against the borrower.

• It avoids the need to pay off any other, junior loans.

Which of these buildings would be MOST likely to be appraised using the cost approach?

• a contemporary art museum in Dallas

• a single-family home in Austin

• an outlet mall in San Marcos