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