When the buyer takes title to the property subject to the existing loan, “subject to” most nearly means ___

Which of the following are most related to each other?

Points and interest.

While all answer selections relate to one another, points and prepaid interest are synonymous, making this answer selection the best match.

A prepayment penalty is the opposite of a (n) ____

“or more” clause.

A prepayment penalty imposes a charge on the borrower for paying off the debt early. With an ‘or more’ clause, the borrower is allowed to prepay the loan at any time with no penalty.

The maturity date of a construction loan begins from ____

the date of the note.

The date on the note establishes the beginning of the maturity process.

A lender most likely to make a loan to a borrower with a FICO score of 500 would be ____

a subprime lender.

Subprime lenders are those that make loans to less qualified borrowers and will hold the loans they originate.

A second trust deed can be distinguished from a first trust deed by ____

the time and date of recording.

The priority of trust deeds is determined by the time and date of recording.

Bruce sold his home for $215,000 to Maria and carried back a $150,000 note with interest at 6% per annum. The note was secured by a first trust deed. The home had a fair market value (FMV) of $200,000. Later, Bruce sold the trust deed and note at a discounted price of $135,000 to Syndi. On the back of the note, Bruce wrote, “I hereby assign the within note to Syndi without recourse.” If Maria defaults before any principal payments are made, Syndi’s best legal remedy is to ____

foreclose to enforce payment of the $150,000.

The demand would be on Maria for the full amount of the monies owed regardless of the discounted price paid for the note.

One of the primary purposes of the Real Estate Settlement Procedures Act (RESPA) is to ____

provide consumers with enough information to enable them to effectively shop for settlement services.

While standardizing costs may seem likely a reasonable goal, the Real Estate Settlement Procedures Act (RESPA) is primarily intended to insure that consumers are not being charged hidden fees and have the information they need to make an educated decision between competing lenders.

Personal property that, by its attachment to real property, is regarded as real estate is called ____

a fixture

When personal property is attached to real property to such an extent that a person cannot extract the item from the real property without damaging the real property, the item is a fixture. Another test to determine whether an item is a fixture is whether the item is so adapted to the real property, that to remove the item will diminish the value or utility of the real property. Of course, if the purchase contract specifically includes a certain item with the sale of the property, that item must be regarded as a fixture, whether it meets the legal definition of fixture or not. Likewise if the purchase contract specifically excludes an item from the sale, it must be regarded as personal property, and should be removed.

The real estate loan that allows interest rates to increase or decrease depending on money market conditions is called a (n) ____

adjustable interest rate loan.

An adjustable interest rate loan, also known as an adjustable rate mortgage (ARM) , allows for interest rate fluctuations based on changes in an agreed to index.

A buyer is most likely able to borrow 100% of the purchase price with which of the following types of financing?

Veterans Administration (VA).

The Federal National Mortgage Association (FNMA) is not a primary lender and neither conventional nor Federal Housing Administration (FHA) lenders have programs that generally allow the borrower to borrow 100% of the purchase price.

Total foreclosure time under a trustee’s sale on a trust deed is minimally ____

four months.

A trustee’s sale includes a three month redemption period followed by three weeks of advertising the sale for a total just short of four months if the sale is processed without any delay. In practice, it is generally longer.

The term warehousing in reference to mortgage financing describes ____

a mortgage broker who packages loans prior to their sale on the secondary market.

Warehousing in finance is similar to a retailer concept. Mortgage brokers bundle loans for sale on the secondary market.

Which of the following loans would be most likely to qualify for Federal Housing Administration (FHA) insurance but not for a Veterans Administration (VA) loan guarantee?

A loan to fund the purchase of one-to-four units of residential rental property.

While neither the Federal Housing Administration (FHA) or Veterans Administration (VA) will guarantee properties intended for business (motel or agriculture included), FHA will do small residential rentals (one-to-four units).

Personal property that, by its attachment to real property, is regarded as real estate is called ____

a fixture

When personal property is attached to real property to such an extent that a person cannot extract the item from the real property without damaging the real property, the item is a fixture. Another test to determine whether an item is a fixture is whether the item is so adapted to the real property, that to remove the item will diminish the value or utility of the real property. Of course, if the purchase contract specifically includes a certain item with the sale of the property, that item must be regarded as a fixture, whether it meets the legal definition of fixture or not. Likewise if the purchase contract specifically excludes an item from the sale, it must be regarded as personal property, and should be removed.

When the buyer takes title to the property subject to the existing loan, “subject to” most nearly means `____`

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When the buyer takes title to the property subject to the existing loan, “subject to” most nearly means ____

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When the buyer takes title to the property subject to the existing loan, “subject to” most nearly means `____`