ENCUMBRANCES AND LIENS

An encumbrance is most broadly defined as

• Another's right to use a property without the permission of the property owner

• Another's right to claim the sales proceeds of a property that has been used as collateral for a loan

• Another's interest in a real property that limits the interests of the freehold property owner

• Another's right to control how the freehold owner of a real property uses the property

A property is secured by a mortgage that does not contain a "power of sale
clause. To foreclose, the lien holder will have to

• File a deficiency suit

• File a foreclosure suit

• Obtain a deed in lieu of foreclosure

• Obtain a writ to extinguish the lien

In a strict foreclosure

• A lender takes title to the liened property directly

• A lender receives the proceeds from the forced sale of the liened property

• The defaulting owner does not have the opportunity to prevent the foreclosure by paying the amounts owed

• A foreclosure suit is optional

A property is secured by a mortgage that does not contain a "power of sale" clause. To foreclose, the lien holder will have to

• File a deficiency suit

• File a foreclosure suit

• Obtain a deed in lieu of foreclosure

• Obtain a writ to extinguish the lien

Foreclosure is

• A court-ordered acceleration of loan payments

• The final step in a bankruptcy filing

• A proceeding to enforce a lien by forcing sale or transfer of a secured property

• A proceeding to take equitable title to a property that was liened as security for a mortgage loan

Which of the following tax liens is a junior lien?

• Special assessment tax lien

• Inheritance tax lien

• Income tax lien

• Ad valorem tax lien

A lien holder can change the priority of a junior lien by agreeing to

• Change the date of recording

• Lower the amount of the claim

• Vacate the lien

• Subordinate the lien

A real estate tax lien, a federal income tax lien, a judgment lien, and a mortgage lien are recorded against a property. Which lien will be paid first when the property is sold?

• Real estate tax lien

• Federal income tax lien

• Judgment lien

• Mortgage lien

A general lien is a lien

• Imposed by statutory law

• Imposed by court order

• Placed against an individual rather than against any particular property

• Placed against any and all property owned by an individual

How is a lien terminated?

• Payment of the debt that is the subject of the lien and recording of the satisfaction

• Transfer of the property that has the lien

• Recording of another lien that is superior

• Death of the lienor or line