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45 hours Post Licensing Chapter 10-13 Exam Questions and Complete Solutions Graded A+
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45 hours Post Licensing Chapter 10-13 Exam Questions and Complete Solutions Graded A+
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45 hours Post LicensingChapter 10-13 Exam
Questions and Complete
Solutions Graded A+
Forbearance or Moratorium
(to avoid foreclosure) - Answer: waiver of principal payments (interest Only)
Deferred interest (Principal only)
Restructure the Mortgage loan - Answer: involves lowering the interest rates, accruals of interest, or
extended maturity date.
nonrecourse loan - Answer: borrower is not personal liable for the original loan, the lender could
decided to make the borrower personally liable as part of the restructuring agreement.
the process of redesigning a loan - Answer: is called Recasting
transfers the mortgage to a new owner - Answer: assume the loan or take the property subject to the
existing mortgage.
Deed in Lieu of Foreclosure - Answer: buyer can't make payments
borrower sells the equity to the lender
minimizes expenses of foreclosure
lender may not accept
also called Voluntary Conveyance
, Tax consequences in deed in lieu foreclosure - Answer: IRS may considered this forgiveness of debt
income and therefore taxable to the borrower as a gift from the lender.
Short Sale Transaction - Answer: seller enters into a settlement agreement with the lender where the
lender consents to a sale price for the property that is below the outstanding loan balance. the sale
proceeds fall short of the amount owed to the lender
Requirements in a Short Sale - Answer: property has been offered for sale on the market for a certain
number of days at a reasonable price.
that the offers received are acceptable and legitimated
Lender will want to check the value of the property BPO, appraisal or both
qualifying the seller for a short sale requires - Answer: seller to missed multiple payments with negative
impact on credit
show financial hardship
Establishing financial hardship - Answer: seller need to write a letter lost job
however medical issue to move closer to medical facility is not a hardship.
declining values alone no a hardship
seller hardship letter - Answer: must be specific and convince the lender. lender can accept or reject
based on this letter. Seller must be persuasive and honest and frank.
foreclosure process - Answer: officially begins when a lender records a lis pendens (notice of lawsuit)
and files the law suit against the borrower where the property is located.
Deficiency Judgment - Answer: when the sale of the foreclousure is not sufficient to pay the loan lenders
obtain a Deficiency Judgement to obtain the outstanding balance from other source of the borreower
assest.
allow in florida
courthouse auctions - Answer: property taxes, mortgage, income taxes, community association fees
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