Exam (elaborations)
CHAPTER 7 NATIONAL REAL ESTATE EXAM PREP (CHAMPIONS SCHOOL OF REAL ESTATE) Q & S 2024-25
- Course
- Institution
CHAPTER 7 NATIONAL REAL ESTATE EXAM PREP (CHAMPIONS SCHOOL OF REAL ESTATE) Q & S 2024-25
[Show more]
Seller
Follow
Content preview
CHAPTER 7 NATIONAL REAL ESTATE EXAM PREP(CHAMPIONS SCHOOL OF REAL ESTATE) Q & S 2024-25
Conventional loan ANS - a loan that is neither federally insured nor guaranteed
Non-conventional loan ANS - mortgage loans through three agencies:
The federal housing Admin.
The US dept of Veteran Affairs
US Dep. of Agriculture
contract for deed (installment contract) ANS - seller financing and buyer does not get deed until the
property has been paid for in full
Mortgage ANS - Pledge of real property as a security for a promissory note.
Mortgagor ANS - borrows the money and gives the mortgage as a pledge to the lender
Mortgagee ANS - A lender in a mortgage loan transaction.
promissory note (note) ANS - Instrument for the debt. Personal promise to pay.
Lien theory ANS - States when a mortgage loan is used for the purchase of real property, at closing the
buyer receives the title and the lender has the lien.
Title theory ANS - At closing the lender receives the title and will hold it until the lien is satisfied or paid
off.
Deed of trust ANS - Contains a "power of sale" clause that allows for non-judicial foreclosure.
Primary market ANS - Where consumers go to borrow money
, Secondary market ANS - where lenders go for money
Conforming loan ANS - a standardized conventional loan written on uniform documents that meets the
purchase requirements of Fannie Mae and Freddie Mac - both loan amount and borrower
characteristics must meet the guidelines
Non-conforming loan ANS - Does not meet the secondary market guidelines. A loan unable to be sold
to Fannie Mae or Freddie Mac (ex: a sub prime loan)
Fixed-rate amortized loan ANS - Equal, regular payments of principal and interest until the loan is
repaid.
Term loans (Straight loan) ANS - Interest only until the end of the term when the entire principle is
repaid.
Blanket loan ANS - covers more than one piece of property. This loan may contain a release clause
allowing the borrower to obtain partial releases of specific lots by making required lump sum payments.
Package loan ANS - Includes real property plus personal property. (a furnished condominium)
Budget loan ANS - Includes Principle, Interest, Taxes, and Insurance (PITI) in monthly payments.
Taxes and insurance are placed in an __________ _________________. ANS - Escrow account
Loan servicer ANS - Party managing the escrow account
Balloon loan ANS - any loan in which the final payment is larger than the past payments
Participation loan ANS - Two or more lenders own a share.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Professorkaylee. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77858 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now