887. In a trust deed, the trustor:

887. In a trust deed, the trustor: • Holds the note and deed of trust; • Signs a note for the amount borrowed; • Advances the funds to the borrower; • Receives the payments from the borrower.

887. In a trust deed, the trustor: • Holds the note and deed of trust; • Signs a note for the amount borrowed; • Advances the funds to the borrower; • Receives the payments from the borrower. Trustor – Signs the trust deed

94. The one who loans the money on a parcel of real property and secures that loan by means of a trust deed is known as the: • Trustor; • Mortgagor; • Beneficiary; • Trustee.

94. The one who loans the money on a parcel of real property and secures that loan by means of a trust deed is known as the: • Trustor; • Mortgagor; • Beneficiary; • Trustee. Beneficiary – Loans money

875. On a trust deed loan, the beneficiary's consent should be obtained for which of the following: • Consolidation agreements; • Boundary line adjustments; • New restriction agreements; • All of the above.

875. On a trust deed loan, the beneficiary's consent should be obtained for which of the following: • Consolidation agreements; • Boundary line adjustments; • New restriction agreements; • All of the above. Beneficiary – Consent for consolidation, new restrictions

95. The right or power to sell a property in the event of a default under the terms of the trust deed is given by: • Trustee to the trustor; • Buyer to the beneficiary; • Buyer to the seller; • Trustor to the trustee.

95. The right or power to sell a property in the event of a default under the terms of the trust deed is given by: • Trustee to the trustor; • Buyer to the beneficiary; • Buyer to the seller; • Trustor to the trustee. Right to sell – Trustor to trustee

98. The document which is used to convey the title to real property from the trustee to the trustor when the trust deed is terminated is: • A quitclaim deed; • A reconveyance deed; • A warranty deed; • A grant deed.

98. The document which is used to convey the title to real property from the trustee to the trustor when the trust deed is terminated is: • A quitclaim deed; • A reconveyance deed; • A warranty deed; • A grant deed. Trust deed terminated – Reconveyance deed

99. When a deed of trust is foreclosed by court sale, the action: • Is the same as a foreclosure by trustee's sale; • Would allow the trustor a redemption period; • Is not legal in California; • Prevents a deficiency judgment.

99. When a deed of trust is foreclosed by court sale, the action: • Is the same as a foreclosure by trustee's sale; • Would allow the trustor a redemption period; • Is not legal in California; • Prevents a deficiency judgment. Court Sale – one year redemption period

102. When there has been a default of a note and trust deed, the trustor is given a period of time to redeem the property. During this time, the right of possession belongs to the: • Trustor; • Mortgagee; • Beneficiary; • Trustee.

102. When there has been a default of a note and trust deed, the trustor is given a period of time to redeem the property. During this time, the right of possession belongs to the: • Trustor; • Mortgagee; • Beneficiary; • Trustee. Court sale – Trustor possesses the property

100. A trustee has legally begun the process to sell property secured by a trust deed. After the notice of default is recorded, the trustee must wait at least three months before: • The foreclosure is final; • Issuing the reconveyance deed; • Publishing the notice of sale; • Conveying title to the beneficiary.

100. A trustee has legally begun the process to sell property secured by a trust deed. After the notice of default is recorded, the trustee must wait at least three months before: • The foreclosure is final; • Issuing the reconveyance deed; • Publishing the notice of sale; • Conveying title to the beneficiary. Trustee’s sale – 3 months before publishing

597. A homeowner failed to make payments on his trust deed loan for two successive months and a notice of default has been recorded. He has: • Rights of redemption; • Rights of reinstatement; • Loan moratorium rights; • Lost his opportunity to stop foreclosure.

597. A homeowner failed to make payments on his trust deed loan for two successive months and a notice of default has been recorded. He has: • Rights of redemption; • Rights of reinstatement; • Loan moratorium rights; • Lost his opportunity to stop foreclosure. Trustee’s sale (notice of default) – Right of reinstatement

101. A trustor defaults on his loan and refuses to reinstate the deed of trust. The most expedient thing for the beneficiary to do is to institute a: • Sheriffs sale; • Lien sale; • Trustee's sale; • Judicial foreclosure.

101. A trustor defaults on his loan and refuses to reinstate the deed of trust. The most expedient thing for the beneficiary to do is to institute a: • Sheriffs sale; • Lien sale; • Trustee's sale; • Judicial foreclosure. Trustee’s sale – Most expedient

727. If a lender accepts a deed in lieu of foreclosure from a trustor, the lender: • Must also receive a power of sale from the trustor; • Will own the property free and clear of any other loans; • Must go to court and get a deficiency judgment; • Will assume any junior liens.

727. If a lender accepts a deed in lieu of foreclosure from a trustor, the lender: • Must also receive a power of sale from the trustor; • Will own the property free and clear of any other loans; • Must go to court and get a deficiency judgment; • Will assume any junior liens. Deed in lieu of foreclosure – Lender assumes junior liens

845. When an agent has sold a single-family residence and is helping the buyer obtain a first trust deed loan from a bank and a second trust deed loan to be carried back by the seller, the agent will often record a "Request for Notice of Default." Such action is usually taken for the protection of the: • Trustor on the bank loan; • Trustee of the bank loan; • Trustee of the seller's carry-back loan; • Beneficiary of the second loan.

845. When an agent has sold a single-family residence and is helping the buyer obtain a first trust deed loan from a bank and a second trust deed loan to be carried back by the seller, the agent will often record a "Request for Notice of Default." Such action is usually taken for the protection of the: • Trustor on the bank loan; • Trustee of the bank loan; • Trustee of the seller's carry-back loan; • Beneficiary of the second loan. Request for notice protects – Beneficiary of second loan

105. The basic protection of a lender on a purchase-money second trust deed would be: • Equity of the borrower; • Credit rating of the borrower; • Amount of second trust deed; • The borrower's ability to repay.

105. The basic protection of a lender on a purchase-money second trust deed would be: • Equity of the borrower; • Credit rating of the borrower; • Amount of second trust deed; • The borrower's ability to repay. Lender’s basic protection – Borrower’s equity

103. If there is no special agreement to the contrary, the mortgage usually having priority is the one: • For the greatest amount of money; • That is a construction loan; • That is recorded first; • That is executed and delivered first.

103. If there is no special agreement to the contrary, the mortgage usually having priority is the one: • For the greatest amount of money; • That is a construction loan; • That is recorded first; • That is executed and delivered first. Priority – Recorded first

107. A release clause in a mortgage: • Provides for an option to extend its due date; • Releases a guarantor from further liability under specified conditions; • Creates a lien second only to the lien of taxes and assessments; • Allows portions of the property, given as security, to be released from the mortgage lien upon performance of a specified act.

107. A release clause in a mortgage: • Provides for an option to extend its due date; • Releases a guarantor from further liability under specified conditions; • Creates a lien second only to the lien of taxes and assessments; • Allows portions of the property, given as security, to be released from the mortgage lien upon performance of a specified act. Release clause – releases portions of the property

110. If a seller wanted to relieve himself of the primary liability for payment of a trust deed and note, he must find a buyer who is willing to: • Assume the trust deed and note liability; • Sign a release agreement; • Take title subject to the trust deed and note; • Execute a subordination agreement.

110. If a seller wanted to relieve himself of the primary liability for payment of a trust deed and note, he must find a buyer who is willing to: • Assume the trust deed and note liability; • Sign a release agreement; • Take title subject to the trust deed and note; • Execute a subordination agreement. “Assume” – Relieves seller

111. The Irwins made an offer to purchase the Greys property. As part of the offer, the Irwins agreed to take title “subject to” an existing VA loan which the Greys obtained when they purchased the property in the approximate amount of $39,000. If the Greys sell to the Irwins under these conditions, which of the following is true concerning liability for a loss suffered by the government after a foreclosure on the VA loan: • The Irwins will be primarily liable; • The Greys and the Irwins will be equally liable; • The Greys will be primarily liable; • Neither couple is liable because the Irwins took title "subject to" the existing loan.

111. The Irwins made an offer to purchase the Greys property. As part of the offer, the Irwins agreed to take title “subject to” an existing VA loan which the Greys obtained when they purchased the property in the approximate amount of $39,000. If the Greys sell to the Irwins under these conditions, which of the following is true concerning liability for a loss suffered by the government after a foreclosure on the VA loan: • The Irwins will be primarily liable; • The Greys and the Irwins will be equally liable; • The Greys will be primarily liable; • Neither couple is liable because the Irwins took title "subject to" the existing loan. “Subject to” – Sellers liable; Buyers not liable

114. A trust deed can have a provision that allows future loans on the property to have priority. This would be called: • An assignment clause; • A release clause; • A subordination clause; • An acceleration clause.

114. A trust deed can have a provision that allows future loans on the property to have priority. This would be called: • An assignment clause; • A release clause; • A subordination clause; • An acceleration clause. Subordination clause – Future loans have priority

115. A clause in a trust deed, which states that the lender’s rights shall be secondary to a subsequent trust deed, is called: • An alienation clause; • An escalation clause; • A subordination clause; • A submortgage.

115. A clause in a trust deed, which states that the lender’s rights shall be secondary to a subsequent trust deed, is called: • An alienation clause; • An escalation clause; • A subordination clause; • A submortgage. Subordination clause – Future loans have priority

119. The clause in a trust deed or mortgage which permits the mortgagee to declare the entire unpaid sum due upon default by a mortgagor is called a (an): • Forfeiture clause; • Escalator clause; • Elevator clause; • None of the above.

119. The clause in a trust deed or mortgage which permits the mortgagee to declare the entire unpaid sum due upon default by a mortgagor is called a (an): • Forfeiture clause; • Escalator clause; • Elevator clause; • None of the above. Acceleration Clause – Unpaid sum due

120. An “open-end” provision in a mortgage would benefit the borrower the most if he: • Prepaid the loan; • Allowed a subsequent buyer to assume the loan; • Had a loan subordinated to a construction loan; • Borrowed additional money.

120. An “open-end” provision in a mortgage would benefit the borrower the most if he: • Prepaid the loan; • Allowed a subsequent buyer to assume the loan; • Had a loan subordinated to a construction loan; • Borrowed additional money. Open-end – Borrow additional money

598. When the term “beneficiary statement” is used by those in real estate finance, it identifies a statement made: • By the lender, as to the current balance due to pay off a real estate loan; • Designating the one who will receive the property in the event of the borrower's death; • By the insurer, stating the amount that will be paid to the policyholder if the improvements are destroyed; • By the property owner, listing the beneficial features of an assumable loan.

598. When the term “beneficiary statement” is used by those in real estate finance, it identifies a statement made: • By the lender, as to the current balance due to pay off a real estate loan; • Designating the one who will receive the property in the event of the borrower's death; • By the insurer, stating the amount that will be paid to the policyholder if the improvements are destroyed; • By the property owner, listing the beneficial features of an assumable loan. Beneficiary statement – gives current balance

112. In the field of real estate, a “prepayment penalty” is sometimes: • Required from a trustor who makes advance payments on his home loan; • Collected from a borrower who is late in his payment on his home loan; • Charged a buyer when he applies for a home loan; • Written into a trust deed for the protection of the trustor.

112. In the field of real estate, a “prepayment penalty” is sometimes: • Required from a trustor who makes advance payments on his home loan; • Collected from a borrower who is late in his payment on his home loan; • Charged a buyer when he applies for a home loan; • Written into a trust deed for the protection of the trustor. Prepayment penalty – Trustor making advance payments

671. One document, which requires verification and recording for its validity, is a: • Trust deed; • Notice of default; • Judgment; affecting real property; • Mechanic's lien.

671. One document, which requires verification and recording for its validity, is a: • Trust deed; • Notice of default; • Judgment; affecting real property; • Mechanic's lien. Mechanic’s lien – Verified and recorded

122. The difference between judgment liens and mechanic's liens is: • Mechanic's liens may take priority earlier than the date they are recorded; • Judgment liens are involuntary liens; • Judgment liens are not enforceable until recorded; • Mechanic's liens are created by statute.

122. The difference between judgment liens and mechanic's liens is: • Mechanic's liens may take priority earlierthan the date they are recorded; • Judgment liens are involuntary liens; • Judgment liens are not enforceable until recorded; • Mechanic's liens are created by statute. (Mechanic’s lien) Priority – Earlier than recording

887. In a trust deed, the trustor: