Chapter 9 - Real Estate Finance Flashcards Preview

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Flashcards in Chapter 9 - Real Estate Finance Deck (20)
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1

In a tight money market one would generally find

a buyers market

2

the period within which a mortgagor may reclaim ownership after foreclosure and sheriff's sale is known as the

statutory period of redemption

3

a land contract is

for the purchase of property in which the seller becomes the buyer's . lender

4

to slow down an escalating rate of inflation, the federal reserve can

raise the discount rate charged to member banks

5

the mortgage market is made of the primary and ____ mortgage market

secondary

6

  • The federal reserve normally affects the supply of money in circulation by all of the following EXCEPT:
  • -adjusting the discount rate
  • -buying or selling gold on the international market
  • -changing reserve requirements
  • -buying or selling bonds

EXCEPT-buying or selling gold on the international market

7

Sean owns five parcels of property that he is willing to hypothecate for a loan to develop all the parcels. sean will be required to execute a

blanket mortgage

8

today, fannie mae's primary responsibility is to

maintain an active secondary market for mortgages

9

A first mortgage is defined as the

mortgage that has been recorded ahead of all other mortgages

10

the federal national mortgage association was originally created for the primary purpose of

increasing the amount of funds available for housing loans

11

all of the following are primary lenders EXCEPT:

  • -mortgage bankers
  • -mutual savings
  • -FHA
  • -Banks

FHA

12

In a sheriff's sale, any excess money received from the sale beyond the lender's judgement and costs

must be given to the foreclosed upon borrower

13

when obtaining financing for undeveloped land upon which the borrower intends to construct a house, he/she should make sure the loan has

a subordination clause

14

a provision in a mortgage that prohibits a borrower from paying off a loan in full prior to the end of the specified term without penalty is known as

a prepayment penalty clause

15

when a property secured by a deed of trust has been paid in full, the beneficiary will direct the trustee to execute a

deed of reconveyance

16

a state in which a loan secured by the real property creates an encumbrance on title to the property, rather than title being held by the lender until the debt is fully retired, is known as

a lien theory state

17

when a trustee's sale has been held, and the successful bidder is given a trustee's deed, the alienated homeowner has no (check all that apply)

  • -statutory right of redemption
  • -further liability to the lender
  • -legal duty to leave the property for 180 days

  • -statutory right of redemption
  • -further liability to the lender

18

the prime rate is established by

individual banks

19

a mortgage whose payment includes a share of the property taxes and hazard insurance in addition to principal and interest known as a

budget mortgage

20

construction loans are generally designed to

provide high interest short term funds to builders