Deck 41: Real Estate Mortgages

Question 1

Which of the following is true of mortgage? ​

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.

Answer 1

D

Question 2

Which of the following is true of foreclosures?

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.

Answer 2

B

Question 3

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

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.

Answer 3

D

Question 4

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.

Question 5

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

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.

Question 6

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

Question 7

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. ​

Question 8

When a mortgage is assigned: ​

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 9

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

Question 10

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

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

Question 11

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

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

Question 12

​ Explain any one duty of a mortgagor.

Question 13

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

Question 14

A mortgagee normally retains possession of the property. ​

Question 15

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

Question 16

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

Question 17

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

Question 18

Which of the following best describes a lien? ​

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.

Question 19

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

Question 20

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