Champions TX Real Estate Finance Property Management SAE
Comprehensive Resource To Help You Ace 2026-2027 Exams Includes
Frequently Tested Questions With ELABORATED 100% Correct
COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update
1. Which is NOT a responsibility of the loan servicing company? - Correct Answer:
Providing post-purchase counseling to buyers
2. A homeowner's property was sold at a foreclosure sale in January. In June, the
homeowner paid all monies past due and redeemed the property. In order to do this,
the state in which the property is located must have - Correct Answer: a statutory
period of redemption.
3. If the lender and the borrower agree on a recasting arrangement to avoid foreclosure,
the lender will require a - Correct Answer: new title search.
4. An equitable redemption period gives the borrower the opportunity - Correct
Answer: make up the outstanding balance before a foreclosure sale.
5. After executing a contract, every formal real estate loan process begins when the
borrowers - Correct Answer: complete a standard loan application
6. The MOST common loan default occurs when the borrower - Correct Answer: is
delinquent in making principal and interest payments.
7. A couple has a conventional mortgage loan with private mortgage insurance. They are
now sixmonths in default on the loan. In order to collect the monies due, the lender will
have to initiate a - Correct Answer: Judicial foreclosure.(With a mortgage, judicial
, foreclosure is required; if the loan is backed by a deed of trust, the nonjudicial
foreclosure is used (no court appearance.)
8. All of the following are true statements about using the Torrens system of title guarantee
EXCEPT - Correct Answer: the search goes back through all previous owners.
9. The cost approach method of estimating a property's value is based on the current value
of its - Correct Answer: physical parts.
10. A man has six months after his property is sold at public auction to redeem the property
according to his state's - Correct Answer: statutory redemption period.
11. An investor who is interested in purchasing a rental property could estimate the value by
using - Correct Answer: the gross rent multiplier.
12. he three methods employed for obtaining assurance of good title include all of the
following EXCEPT - Correct Answer: constructive notice.
13. A deed of trust is used to achieve - Correct Answer: a nonjudicial foreclosure.
14. In order to avoid foreclosure, the lender may also provide the option to the
borrower/homeowner of redesigning the balance still owed into a new loan that extends
the original loan period to reduce payment. This process is known as - Correct
Answer: recasting.
15. A homeowner decided to change her homeowners insurance to a new company and
canceled her policy. The lender received notice that the old insurance was canceled but
did not receive notice of placement of new insurance. In order to avoid being in default,
, the borrower/homeowner should provide the lender with - Correct Answer: a paid
invoice as evidence the insurance was paid before lapse.
16. What is the borrower allowed to do during the entire redemption period? - Correct
Answer: Retain possession of the property
17. The borrower must receive a Loan Estimate (LE) of all costs on the loan and the property
within three business days of application according to the - Correct Answer: Real
Estate Settlement Procedures Act.
18. The BEST method a lender can use for a guide to avoid poor property management by
the homeowner/borrower is - Correct Answer: pride of ownership.
19. Because of the increase in high loan-to-value (LTV) ratios and long-term amortization,
lenders place more emphasis on the - Correct Answer: borrower's ability to pay the
mortgage
20. The credit scoring system uses statistical information to compare a consumer's
information to the credit performance of - Correct Answer: consumers with similar
credit files.
21. The average life of a real estate loan is - Correct Answer: 7-8 years.
22. Most lenders are not disturbed by payments made within the grace period, but they will
take remedial action when an account consistently incurs late charges or when a
borrower exceeds a delinquency period of how many days? - Correct Answer: 30
, 23. A consumer is trying to raise his credit score, so he stops using all his credit cards for one
year. Why is this a bad idea? - Correct Answer: Inactive credit cards do not
contribute to a credit score.
24. All these methods are used to determine assurance of good title EXCEPT - Correct
Answer: U.S. census report.
25. When determining a credit score, what information is NOT collected from a credit
report? - Correct Answer: Annual income
26. Old English law established an equitable redemption period that allowed for the -
Correct Answer: Borrower to have a specified amount of time to clear the default.( The
equitable period of redemption allows the borrower to make up all back payments and
costs prior to the sale of the property (a statutory redemption period is a period of time
after sale of the property.)
27. A deed of trust is used to achieve a - Correct Answer: nonjudicial foreclosure.
(A deed of trust allows the trustee to conduct the sale of the property without anycourt
action involved, which is a nonjudicial form of foreclosure.)
28. A deed in lieu of foreclosure can be described as a - Correct Answer: Voluntary
transfer of deed
(Offering to give the lender the deed in lieu of foreclosure is a voluntary action.)
29. Homeowners should only consider foreclosure if the house is - Correct Answer:
Worth less than they owe and they cannot afford the payments.
Comprehensive Resource To Help You Ace 2026-2027 Exams Includes
Frequently Tested Questions With ELABORATED 100% Correct
COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update
1. Which is NOT a responsibility of the loan servicing company? - Correct Answer:
Providing post-purchase counseling to buyers
2. A homeowner's property was sold at a foreclosure sale in January. In June, the
homeowner paid all monies past due and redeemed the property. In order to do this,
the state in which the property is located must have - Correct Answer: a statutory
period of redemption.
3. If the lender and the borrower agree on a recasting arrangement to avoid foreclosure,
the lender will require a - Correct Answer: new title search.
4. An equitable redemption period gives the borrower the opportunity - Correct
Answer: make up the outstanding balance before a foreclosure sale.
5. After executing a contract, every formal real estate loan process begins when the
borrowers - Correct Answer: complete a standard loan application
6. The MOST common loan default occurs when the borrower - Correct Answer: is
delinquent in making principal and interest payments.
7. A couple has a conventional mortgage loan with private mortgage insurance. They are
now sixmonths in default on the loan. In order to collect the monies due, the lender will
have to initiate a - Correct Answer: Judicial foreclosure.(With a mortgage, judicial
, foreclosure is required; if the loan is backed by a deed of trust, the nonjudicial
foreclosure is used (no court appearance.)
8. All of the following are true statements about using the Torrens system of title guarantee
EXCEPT - Correct Answer: the search goes back through all previous owners.
9. The cost approach method of estimating a property's value is based on the current value
of its - Correct Answer: physical parts.
10. A man has six months after his property is sold at public auction to redeem the property
according to his state's - Correct Answer: statutory redemption period.
11. An investor who is interested in purchasing a rental property could estimate the value by
using - Correct Answer: the gross rent multiplier.
12. he three methods employed for obtaining assurance of good title include all of the
following EXCEPT - Correct Answer: constructive notice.
13. A deed of trust is used to achieve - Correct Answer: a nonjudicial foreclosure.
14. In order to avoid foreclosure, the lender may also provide the option to the
borrower/homeowner of redesigning the balance still owed into a new loan that extends
the original loan period to reduce payment. This process is known as - Correct
Answer: recasting.
15. A homeowner decided to change her homeowners insurance to a new company and
canceled her policy. The lender received notice that the old insurance was canceled but
did not receive notice of placement of new insurance. In order to avoid being in default,
, the borrower/homeowner should provide the lender with - Correct Answer: a paid
invoice as evidence the insurance was paid before lapse.
16. What is the borrower allowed to do during the entire redemption period? - Correct
Answer: Retain possession of the property
17. The borrower must receive a Loan Estimate (LE) of all costs on the loan and the property
within three business days of application according to the - Correct Answer: Real
Estate Settlement Procedures Act.
18. The BEST method a lender can use for a guide to avoid poor property management by
the homeowner/borrower is - Correct Answer: pride of ownership.
19. Because of the increase in high loan-to-value (LTV) ratios and long-term amortization,
lenders place more emphasis on the - Correct Answer: borrower's ability to pay the
mortgage
20. The credit scoring system uses statistical information to compare a consumer's
information to the credit performance of - Correct Answer: consumers with similar
credit files.
21. The average life of a real estate loan is - Correct Answer: 7-8 years.
22. Most lenders are not disturbed by payments made within the grace period, but they will
take remedial action when an account consistently incurs late charges or when a
borrower exceeds a delinquency period of how many days? - Correct Answer: 30
, 23. A consumer is trying to raise his credit score, so he stops using all his credit cards for one
year. Why is this a bad idea? - Correct Answer: Inactive credit cards do not
contribute to a credit score.
24. All these methods are used to determine assurance of good title EXCEPT - Correct
Answer: U.S. census report.
25. When determining a credit score, what information is NOT collected from a credit
report? - Correct Answer: Annual income
26. Old English law established an equitable redemption period that allowed for the -
Correct Answer: Borrower to have a specified amount of time to clear the default.( The
equitable period of redemption allows the borrower to make up all back payments and
costs prior to the sale of the property (a statutory redemption period is a period of time
after sale of the property.)
27. A deed of trust is used to achieve a - Correct Answer: nonjudicial foreclosure.
(A deed of trust allows the trustee to conduct the sale of the property without anycourt
action involved, which is a nonjudicial form of foreclosure.)
28. A deed in lieu of foreclosure can be described as a - Correct Answer: Voluntary
transfer of deed
(Offering to give the lender the deed in lieu of foreclosure is a voluntary action.)
29. Homeowners should only consider foreclosure if the house is - Correct Answer:
Worth less than they owe and they cannot afford the payments.
