WorksheetsAceable Finance 12-13 Loan Process and Foreclosure
Total questions: 17
Worksheet time: 9mins
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
Which of these buildings would be MOST likely to be appraised using the sales-comparison approach?
a contemporary art museum in Dallas
a single-family home in Austin
an outlet mall in San Marcos
Which of these buildings would be MOST likely to be appraised using the income approach?
a contemporary art museum in Dallas
a single-family home in Austin
an outlet mall in San Marcos
Which of these actions would a mortgage's due-on-sale clause prevent?
Jeremy transfers his existing mortgage to the buyer of his home.
Jessica pays off her remaining mortgage balance in one lump sum.
A property is sold in a foreclosure sale. After paying the debt to the lender and fees, there is some profit left over. Which of these statements accurately reflects how that money will be treated?
If the home was a primary residence, the former homeowner is eligible for the capital gains exclusion.
The former homeowner must surrender any profits to the lender.
What clause pre-authorizes the lender to foreclose and sell the property without court oversight or having to file a lawsuit in a nonjudicial foreclosure?
power of sale clause
acceleration clause
Which of the following is not available on lender foreclosures in Texas?
a statutory redemption period
an equitable redemption period
Which loan clause states that whenever there is a breach of contract on the part of the borrower, the lender may make the entire amount of the loan due immediately?
acceleration clause
power of sale clause
