Champions Real Estate Exam Prep National Ch 7 Questions and Answers

Mortgage Loans - correct answer-Most common choice for financing real property. Can be conventional or non-conventional Conventional Loan - correct answer-Neither federally insured nor guaranteed Non-conventional Loan - correct answer-Federally insured/guaranteed mortgage loans to encourage ownership (FHA, VA, USDA) Contract for Deed - correct answer-A means by which the seller passes possession but retains title to the property until the total or a substantial portion of the purchase price is paid. Installment contract. The two parties here are the vendor (owner) and the vendee (buyer). Hypothecation - correct answer-The action of pledging real property as security for a debt Promissory Note - correct answer-A written promise to pay a specified amount of money on demand or at a definite time Lien Theory - correct answer-When mortgage loan is used for purchase of real property, at closing the buyer receives the title and the lender has a lien Title Theory - correct answer-At closing the lender receives the title and will hold it until the lien is satisfied or paid off