Question 1

​ Explain any one duty of a mortgagor.

Accepted Answer

The mortgagor must make all payments of interest and principal as they become due. A failure to pay either the periodic payments of interest and principal or of interest only constitutes a default. A default gives the mortgagee the right to foreclose. 
The mortgagor must also pay any taxes and assessments. Failure to pay becomes a default.   
Finally, the mortgagor must not act in a way which would materially impair the value of the security. Generally, this means a mortgagor may not cause any damage to the property.

Question 2

Which of the following is true of a deed of trust?

Accepted Answer

A) The creditor may sell the property through an auction without a court order upon default. 
B) The trustee becomes responsible for the payment mortgage upon default. 
C) It conveys title to the property to a disinterested third-party. 
D) The trustee holds the property in trust for the benefit of the debtor. 
A) The creditor may sell the property through an auction without a court order upon default. 
B) The trustee becomes responsible for the payment mortgage upon default. 
C) It conveys title to the property to a disinterested third-party. 
D) The trustee holds the property in trust for the benefit of the debtor. C

Question 3

The mortgage contract must follow the same form as a: ​

Accepted Answer

A) bailment 
B) deed 
C) note 
D) bond 
A) bailment 
B) deed 
C) note 
D) bond B

Question 4

The rights of the mortgagee under the mortgage agreement may be assigned. ​

Accepted Answer

A) True 
 B)False

Question 5

A mortgagee has the duty to pay taxes on the property mortgaged. ​

Accepted Answer

A) True 
 B)False

Question 6

A person who holds a mortgage as a security for a debt is a mortgagee. ​

Accepted Answer

A) True 
 B)False

Question 7

If a mortgagor wishes to pay off the mortgage debt before the due date so as to save interest, the right must be reserved at the time the mortgage is given.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true of foreclosures?

Accepted Answer

A) Foreclosure proceedings are the same throughout the country. 
B) An officer of court is allowed to make the sale under order of the court. 
C) Unrecorded mortgages takes precedence over mechanic's lien. 
D) The first mortgage always takes precedence over the cost of foreclosure and taxes. 
A) Foreclosure proceedings are the same throughout the country. 
B) An officer of court is allowed to make the sale under order of the court. 
C) Unrecorded mortgages takes precedence over mechanic's lien. 
D) The first mortgage always takes precedence over the cost of foreclosure and taxes.

Question 9

The mortgagee has the duty to take steps to ensure the recorder's office cancels the mortgage lien  upon full payment of the mortgage.

Accepted Answer

A) True 
 B)False

Question 10

When a property is subject to a mortgage, who is responsible for paying the taxes?

Accepted Answer

A) the mortgage abates tax liability 
B) the bank 
C) the mortgagee 
D) the mortgagor 
A) the mortgage abates tax liability 
B) the bank 
C) the mortgagee 
D) the mortgagor

Question 11

When a mortgage is assigned: ​

Accepted Answer

A) the assignee attains greater rights than the assignor had. 
B) the assignor should require the assignee to produce an estoppel certificate. 
C) the assignee should have the assignment recorded. 
D) the last party to record an assignment has preference when there is more than one assignment. 
A) the assignee attains greater rights than the assignor had. 
B) the assignor should require the assignee to produce an estoppel certificate. 
C) the assignee should have the assignment recorded. 
D) the last party to record an assignment has preference when there is more than one assignment.

Question 12

Real property law exempts mortgages from the usual rules which apply to contracts. 
​

Accepted Answer

A) True 
 B)False

Question 13

The first mortgage takes precedence over the cost of foreclosure and taxes. ​

Accepted Answer

A) True 
 B)False

Question 14

A mortgagor has the right to rents and profits from the property. ​

Accepted Answer

A) True 
 B)False

Question 15

A mortgagor has the right to sell the property, but will not be released from liability unless the debt is paid or a novation takes place. ​

Accepted Answer

A) True 
 B)False

Question 16

Several agencies of the federal government offer assistance to prospective purchasers by insuring mortgages. ​

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is true of governmental mortgage insurance? ​

Accepted Answer

A) The insurance lasts for two years after the mortgage period. 
B) The Federal Housing Administration charges a higher rate of interest than a conventional mortgage. 
C) The U.S. Department of Veterans Affairs offers mortgages for the general public. 
D) The U.S. Department of Veterans Affairs offers lesser interest rates for those who served in active duty in the armed forces. 
A) The insurance lasts for two years after the mortgage period. 
B) The Federal Housing Administration charges a higher rate of interest than a conventional mortgage. 
C) The U.S. Department of Veterans Affairs offers mortgages for the general public. 
D) The U.S. Department of Veterans Affairs offers lesser interest rates for those who served in active duty in the armed forces.

Question 18

A mortgagee normally retains possession of the property. ​

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true of mortgage? ​

Accepted Answer

A) Improvements cannot be mortgaged separate from the land. 
B) The mortgagee normally retains possession of the property. 
C) A person who gives a mortgage as a security for a debt is a mortgagee. 
D) A mortgage constitutes the security of the debt. 
A) Improvements cannot be mortgaged separate from the land. 
B) The mortgagee normally retains possession of the property. 
C) A person who gives a mortgage as a security for a debt is a mortgagee. 
D) A mortgage constitutes the security of the debt.

Question 20

Which of the following best describes a lien? ​

Accepted Answer

A) It is an encumbrance or claim against property. 
B) It is the interest paid on a mortgage. 
C) It is a consideration given to the mortgager. 
D) It is the title deed of the property mortgaged. 
A) It is an encumbrance or claim against property. 
B) It is the interest paid on a mortgage. 
C) It is a consideration given to the mortgager. 
D) It is the title deed of the property mortgaged.

Exam 41: Real Estate Mortgages

​ Explain any one duty of a mortgagor.

Which of the following is true of a deed of trust?

The mortgage contract must follow the same form as a: ​

The rights of the mortgagee under the mortgage agreement may be assigned. ​

A mortgagee has the duty to pay taxes on the property mortgaged. ​

A person who holds a mortgage as a security for a debt is a mortgagee. ​

If a mortgagor wishes to pay off the mortgage debt before the due date so as to save interest, the right must be reserved at the time the mortgage is given.

Which of the following is true of foreclosures?

The mortgagee has the duty to take steps to ensure the recorder's office cancels the mortgage lien upon full payment of the mortgage.

When a property is subject to a mortgage, who is responsible for paying the taxes?

When a mortgage is assigned: ​

Real property law exempts mortgages from the usual rules which apply to contracts. ​

The first mortgage takes precedence over the cost of foreclosure and taxes. ​

A mortgagor has the right to rents and profits from the property. ​

A mortgagor has the right to sell the property, but will not be released from liability unless the debt is paid or a novation takes place. ​

Several agencies of the federal government offer assistance to prospective purchasers by insuring mortgages. ​

Which of the following is true of governmental mortgage insurance? ​

A mortgagee normally retains possession of the property. ​

Which of the following is true of mortgage? ​

Which of the following best describes a lien? ​

Introduction to Law

Courts and Court Procedures

Business Torts and Crimes

Government Regulation of Business

Nature and Classes of Contracts

Offer and Acceptance

Capacity to Contract

Consideration

Defective Agreements

Illegal Agreements

Written Contracts

Third Parties and Contracts

Termination of Contracts

Nature of Personal Property

Special Bailments

Sales of Personal Property

Formalities of a Sale

Transfer of Title and Risk in Sales Contracts

Warranties Product Liability and Consumer Protection

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties, Holders in Due Course and Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Introduction to Business Organizations

Creation and Operation of a Partnership

Dissolution of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corporation

Principles of Insurance

Types of Insurance

Security Devices

Bankruptcy

Nature of Real Property

Transfer of Real Property

Landlord and Tenant

Wills Inheritances and Trust

Filters

Explain any one duty of a mortgagor.

The mortgage contract must follow the same form as a:

The rights of the mortgagee under the mortgage agreement may be assigned.

A mortgagee has the duty to pay taxes on the property mortgaged.

A person who holds a mortgage as a security for a debt is a mortgagee.

When a mortgage is assigned:

Real property law exempts mortgages from the usual rules which apply to contracts.

The first mortgage takes precedence over the cost of foreclosure and taxes.

A mortgagor has the right to rents and profits from the property.

A mortgagor has the right to sell the property, but will not be released from liability unless the debt is paid or a novation takes place.

Several agencies of the federal government offer assistance to prospective purchasers by insuring mortgages.

Which of the following is true of governmental mortgage insurance?

A mortgagee normally retains possession of the property.

Which of the following is true of mortgage?

Which of the following best describes a lien?