Champions Real Estate Finance Exam (2024/ 2025) 100% Correct Questions and Verified Answers| Grade A

Champions Real Estate Finance Exam (2024/ 2025) 100% Correct Questions and Verified Answers| Grade A Q: The money that mortgage companies use to make loans come from the sale of ________, which is considered a business transaction, not a savings account deposit procedure. Answer: Bonds Q: Government entities regularly sell bonds to Answer: Fund major capital investments Q: Advantage of municipal bonds is Answer: That the interest paid to investors is not subject to federal income tax, making them appealing to investors who need to shelter some income from taxation Q: Municipal bond Answer: May be exempt from state and local tax. Q: Encumbrance Answer: A claim, lien, charge, or liability attached to and binding upon real property. Q: lien Answer: A right given by law to certain creditors to have their debts paid out of the property of a defaulting debtor, usually by means of a court sale. Q: Borrower (mortgagor) Answer: Is the party who signed the promissory note and is obligated for the repayment of the loan Q: Occurrences that result in foreclosure include: Answer: Payment delinquency Failure to pay property tax Failure to maintain the mortgaged property Failure to keep the property properly insured Q: Second Mortgage An instrument subordinate to the primary mortgage Q: Lifting clause: