Champions Real Estate Finance Latest Update

Champions Real Estate Finance Latest Update - with 200 Questions and Verified Correct Answers Golden Ticket to Guaranteed A+ Verified by Professor

Abstract of Title - CORRECT ANSWER: A complete history of the title of a piece of property that includes deeds, easements, liens, foreclosure, wills, marriages, deaths, life, estates, fee simple estates, and anything else that had been recorded about a property.

Acceleration Clause - CORRECT ANSWER: A provision in a written mortgage or note, stating that in the event of default, the entire amount of the principal becomes payable.

Ad Valorem - CORRECT ANSWER: according to value

Alienation (Due on Sale) Clause - CORRECT ANSWER: Reserves the right of the

lender to call the note (Declare the entire balance due) if the borrower sells the property without repaying the loan.

Annual Premium - CORRECT ANSWER: based on the LTV and its added to the

borrower's monthly payment.

Assumption Clause - CORRECT ANSWER: Allows a new borrower to take over the

payments on an existing loan under specified terms and conditions.

At the treasury level, funds can be raised to pay for government spending by increasing

borrowing and - CORRECT ANSWER: Raising taxes

Back Ratio - CORRECT ANSWER: The ratio of the borrowers total recurring monthly

debts. 1 / 3

Balloon Note - CORRECT ANSWER: Partially amortized and most commonly done with

secondary mortgages.

Blanket Mortgage - CORRECT ANSWER: Covers more than one piece of property.

Bonds - CORRECT ANSWER: An instrument of corporate or governmental debt. (An

IOU)

Borrower, Lender, Trustee - CORRECT ANSWER: A deed of trust is a three-party

instrument who's parties include:

Budget Mortgage - CORRECT ANSWER: The monthly house payment includes

principal, interest, taxes and insurance (known as PITI)

Capacity - CORRECT ANSWER: Is a measure of the borrower's ability to repay the

debt, and is demonstrated through current earnings and job stability.

Capital - CORRECT ANSWER: Is the sum of all assets that the borrower has

accumulated.

Capital gains tax - CORRECT ANSWER: The sale of capital asset results in either a gain or a loss.

Chain of Title - CORRECT ANSWER: A history or list of all recorded owners all the way back to the sovereignty of the soil.

Character - CORRECT ANSWER: Is a measure of the willingness of a borrower to

make on-time payments. Credit character is revealed in the borrower's credit report.

Character, Capacity, Capital and Collateral - CORRECT ANSWER: The four C's of good

lending: 2 / 3

chronological Age - CORRECT ANSWER: The actual age of the property in years.

Chunking - CORRECT ANSWER: occurs when a fraudster promises to show investors

how to get rich by buying investment properties.

Churning - CORRECT ANSWER: Is excessive selling/lending activity for the purpose of generating fees and commissions.

Clauses - CORRECT ANSWER: may be used in subordinate finance instruments to

reduce the liability of the subordinate lien holder versus the first lien holders liability.

Closed-End Mortgage - CORRECT ANSWER: This loan includes a specific dollar

amount and does not allow for additional borrowing on the same note and mortgage.

Closing - CORRECT ANSWER: The consummation of a real estate transaction in which all appropriate documents are signed and the proceeds of the mortgage loan are then disbursed by the lender.

Closing Disclosure Delivery Requirement - CORRECT ANSWER: The TRID rule

requires that the consumer receives the Closing Disclosure no later than 3 business days before consummation.

Collateral - CORRECT ANSWER: Is something of value that can be pledged as security for repayment.

Collateral -Dependent Loans - CORRECT ANSWER: A hard money loan is a specific

type of asset-based financing in which a borrower receives funds secured by the value of a parcel of real estate.

Commercial Banks - CORRECT ANSWER: Perform a variety of functions, from being a

depository institution to providing lines of credit and loan products to the communities in

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