Unit 6 Instruments of Real Estate Finance Exam Questions With Correct Verified Answers Guaranteed Pass.
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Course
REAL ESTATE FINANCE.
Institution
REAL ESTATE FINANCE.
When a nonrecourse clause is included in a loan agreement, the seller of the security is NOT liable if the
A)
borrower moves.
B)
borrower refinances.
C)
market changes.
D)
borrower defaults. - correct answer D)
borrower defaults.
The nonrecourse clause...
Unit 6 Instruments of Real Estate
Finance Exam Questions
When a nonrecourse clause is included in a loan agreement, the seller of the security is NOT liable if the
A)
borrower moves.
B)
borrower refinances.
C)
market changes.
D)
borrower defaults. - correct answer D)
borrower defaults.
The nonrecourse clause protects the purchaser of loan agreements and makes the seller more diligent in
providing financing to borrowers with the ability to repay the loan.
When the purchaser of a real estate loan wants to be protected in the event the loan goes into default,
the loan is sold with a(n)
A)
nonrecourse clause.
B)
exculpatory clause.
C)
due-on-sale clause.
D)
recourse clause. - correct answer D)
recourse clause.
, Loans sold with recourse require the seller of the security to reimburse the purchaser of the security if
the borrower defaults.
A buyer is more likely to use a contract for deed if the
A)
property is in a rural location.
B)
buyer is an investor.
C)
property is in poor condition.
D)
buyer lacks sufficient cash or credit for traditional financing. - correct answer D)
buyer lacks sufficient cash or credit for traditional financing.
A release clause in a note and deed of trust is activated by
A)
the foreclosure on the property.
B)
the conveying of title to the trustee.
C)
the reconveying of the property to the trustee.
D)
the full satisfaction of the terms of the loan. - correct answer D)
the full satisfaction of the terms of the loan.
A note generally includes all of the following provisions EXCEPT
A)
date signed.
B)
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