New Mexico RE Principles and Practice Questions and Answers

New Mexico RE Principles and Practice Questions and Answers Land value plus current construction costs minus depreciation - Correct Answer ️️ - Cost Approach He can refuse to rent to the tenant because of the history of violence. - Correct Answer ️️ -A landlord discovered that a potential tenant who applied for a unit has a history of alcoholism and violence. What should the landlord do? A person has AIDS - Correct Answer ️️ -Under FHA, It is illegal to discriminate if A judgement against a borrower if the foreclosure sale does not bring enough to pay the balance owed - Correct Answer ️️ -Deficiency Judgment Is used when a borrower has defaulted in the mortgage loan and wants to avoid the foreclosure action. - Correct Answer ️️ -Deed in lieu of foreclosure The amount of a loan expressed as a percentage of value of the real estate offered as collateral - Correct Answer ️️ -A loan-to-value ratio An instrument that creates a lien against multiple parcels of real property - Correct Answer ️️ -Blanket mortgage Damage caused to a property over and above ordinary wear and tear - Correct Answer ️️ -Waste divide the net operating income by the capitalization rate. - Correct Answer ️️ -To find the value of a property using the income approach to value when the net operating income and capitalization rate are known, the appraiser would because of the physical location of the property - Correct Answer ️️ -It is illegal for a lending institution to refuse to make loans in an area Analyzing the results obtained from the three approaches to value - Correct Answer ️️ -Reconciliation A private insurance program which insures the lender for loan amounts in excess of 80% of value. - Correct Answer ️️ -Private Mortgage Insurance A fixture or structure which invades a portion of a property belonging to another. - Correct Answer ️️ -Encroachment increased mortgage interest rates - Correct Answer ️️ -Increased residential rental rates could result from Creates a lien and acts as security for the promissory note. A three-party instrument that conveys naked title to a third party, the trustee, who holds the title on behalf of the lender, also known as the beneficiary. The borrower is the trustor. - Correct Answer ️️ -Deed of Trust the act of lending money at an exorbitant rate of interest - Correct Answer ️️ -Usury The state takes property upon an owners death if there is no will & no heirs exist. - Correct Answer ️️ -Escheat The legal process of preventing one party from reclaim