Azure Tide 12 Exam Questions with Correct Answers

Azure Tide 12 Exam Questions with Correct Answers A contract for deed is also called a land contract. - Answer-True Florida is a title theory state. - Answer-False, Florida is a Lien Theory state When a buyer assumes an existing mortgage, a partial release will be issued which verifies the amount of the unpaid balance, interest rate, and date to which interest has been paid prior to the assignment. - Answer-False Hypothecation allows a person to live in a home that has been pledged as collateral. - Answer-True For every discount point purchased, the lender's yield increases by 1/8 of a percent. - Answer-True Even with an amortized mortgage, a buyer's loan payment covering PITI will change occasionally if the property taxes and homeowner's insurance increases or decreases. - Answer-True The acceleration clause calls the entire balance of the loan due if the borrower defaults on the loan. - Answer-True If upon a foreclosure, there isn't enough money to even pay off the debt to the mortgagee, then a deficiency judgment can be placed against the borrower. - Answer- True 1 Discount point on a $100,000 mortgage would cost $2,500 - Answer-False In a lien theory state, the lender holds title. - Answer-False In which of the following situations would a short sale be appropriate? - Answer-John has been in his home for 5 years. He wants to sell his home, but his mortgage is higher than the value of his home. A homeowner has multiple mortgages on his home. Which one of the following would be considered the primary lien? - Answer-The loan that closed on November 20th and was recorded on December 4th, 2010. Brett is developing a local community. He obtained a blanket mortgage for the collection of properties with multiple legal descriptions. As he sold the properties under the blanket mortgage, what happens to the property under the blanket mortgage? - Answer-A partial release is obtained for just the parcel sold. Lis pendens is what kind of notice? - Answer-Constructive The part of the purchase price paid in cash up front, reducing the amount of the loan or mortgage is what? - Answer-Down payment A lender charges 1 point on a loan of $250,000 for a quoted interest rate of 4.5% interest. What is the cost to the borrower? - Answer-$2,500