Exam 31: A: Mortgages Foreclosures After the Recession

A recession is a written instrument that gives a creditor an interest in real property being acquired by a debtor as security for the debt's payment.

Laurel borrows $150,000 from Marketplace Mortgage Loans to buy a home.The financing documents require Laurel to maintain the property,obtain homeowners' insurance,and pay all property taxes and other assessments through the lender.With respect to these terms,a court is most likely to

Abner borrows funds from Boomtown Credit Union (BCU)to buy real property.Abner signs a written instrument that gives BCU an interest in the property as security for the debt's payment.This instrument is

Violet negotiates with Urban Credit Corporation to obtain a loan for $85,000 to buy a home.During the negotiations,Urban Credit orally misrepresents the terms,but provides the required documents,which accurately state the terms.Violet does not read the documents.The party or parties most likely liable for a violation of the law is

Tracy borrows $30,000 from Secure State Bank.The lender accepts Tracy's equity in her home as collateral,which can be seized if the loan is not repaid on time.With respect to any proceeding that occurs if Tracy fails to make the payments,this loan is subordinated.This means that it

Donato borrows the funds from Eveready Bank to buy real estate and build a home.Donato's first draw of funds pays for the land.Subsequent draws occur at various stages of construction until the house is ready for occupancy.This is

Fact Pattern 31-1B Northeast Bank makes mortgage loans to consumers,including Mai,to buy homes. -Refer to Fact Pattern 31-1B.Under federal law,disclosures with respect to one of Northeast's loans must be provided

A lender can make a higher-priced mortgage loan based on the value of the consumer's home without verifying the consumer's ability to repay the loan.

Under a deed in lieu of foreclosure,the property is conveyed to the lender in satisfaction of the mortgage.

An adjustable-rate mortgage is a standard mortgage with an unchanging rate of interest.

Shade Tree Lending Corporation advertises loans as fixed-rate loans but,in fact,their rates or payment amounts will change.This is

To refinance is to pay off an original mortgage and obtain a new one at more favorable terms.

There are additional disclosure requirements for a loan that carries a high rate of interest or entails high fees for the borrower.

A mortgage must be in writing to comply with the Statute of Frauds.

A subprime mortgage is a loan made to a borrower who does not qualify for a standard mortgage.

Upton borrows $150,000 from Valley Credit Union to buy a home,which secures the loan.Three years into the term,Upton stops making payments on it.Valley Credit repossesses and auctions off the property to Wesley.The sale proceeds are not enough to cover the unpaid amount of the loan.In most states,Valley Credit can ask a court for

Dahlia borrows $125,000 from Clearview Credit Union to buy a home.The interest rate and other terms that are required to be disclosed under federal law must be

Recording a mortgage "perfects" the debtor's security interest in the property.

Agnes borrows $110,000 from Bay Harbor Bank to buy a home under a mortgage with an acceleration clause.After eighteen payments,Agnes stops making payments on the mortgage.Bay Harbor

Franz asks Gateway Mortgage Credit for a loan to pay for the purchase of a home.With a poor credit score and a high current debt-to-income ratio,Franz does not qualify for a standard mortgage.Gateway is most likely to provide