45 hours Post Licensing Chapter 10-13 Correct Questions & Answers!!

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 government auctions - ANSWER Government agencies that sell the property, VA and FHA loans, HUD, as is where is condition - ANSWER what you see is what you get condominium characteristics - ANSWER individual unit ownership percentage ownership of common areas governed by board of directors Declaration of condominiums also called Master Deed - ANSWER identifies the nature of the development proyect name of the condominium the developer principal office