Question 1

A borrower defaults on a deed of trust loan. Before the lender can foreclose, the lender must

Accepted Answer

A)   offer to modify the loan terms to allow the borrower to catch up.
B)   appoint a trustee if the deed of trust is of the automatic trustee form.
C)   notify the borrower, trustee and all interested parties of the default.
D)   advertise the sale several weeks in advance and perform the sale himself, on the site of the property securing the loan.

Question 2

A trust deed can be used for all of the following EXCEPT

Accepted Answer

A)   transfer of title.
B)   hypothecate property.
C)   secure a note.
D)   secure a mortgage. D

Question 3

Choose the one most appropriate answer for each.
-the trustee is notified in advance and either accepts or rejects the appointment

Accepted Answer

A)  accepted form
B)  assignment of rents
C)  automatic form
D)  bare title
E)  beneficiaryF) deed of trustG) defaultH) foreclosureI) junior claimsJ) naked titleK) no statutory redemptionL) power of saleM) public trusteeN) reconveyance deedO) release deedP) request for reconveyanceQ) trustR) trusteeS) trustee's deedT) trustor

Question 4

The borrower receives naked title under a deed of trust.

Accepted Answer

A) True 
 B)False

Question 5

Under a deed of trust, reconveyance is issued by the

Accepted Answer

A)   beneficiary.
B)   trustor.
C)   trustee.
D)   borrower. C

Question 6

The trustee in a deed of trust is a neutral ____________________ party.

Accepted Answer

The answer of The trustee in a deed of trust...

Question 7

One major advantage of a deed of trust over a mortgage is the time between default and foreclosure is relatively short.

Accepted Answer

A) True 
 B)False

Question 8

The funds for a loan secured by a deed of trust are supplied by the beneficiary.

Accepted Answer

A) True 
 B)False

Question 9

When a debt secured by a deed of trust is paid off, naked legal title reverts to the borrower from the

Accepted Answer

A)   mortgagee.
B)   trustor.
C)   beneficiary.
D)   trustee.

Question 10

Choose the one most appropriate answer for each.
-the trustee is named in the deed of trust but not personally notified of the appointment

Accepted Answer

A)  accepted form
B)  assignment of rents
C)  automatic form
D)  bare title
E)  beneficiaryF) deed of trustG) defaultH) foreclosureI) junior claimsJ) naked titleK) no statutory redemptionL) power of saleM) public trusteeN) reconveyance deedO) release deedP) request for reconveyanceQ) trustR) trusteeS) trustee's deedT) trustor

Question 11

Choose the one most appropriate answer for each.
-what the trustee issues to the borrower;also known as a reconveyance deed

Accepted Answer

A)  accepted form
B)  assignment of rents
C)  automatic form
D)  bare title
E)  beneficiaryF) deed of trustG) defaultH) foreclosureI) junior claimsJ) naked titleK) no statutory redemptionL) power of saleM) public trusteeN) reconveyance deedO) release deedP) request for reconveyanceQ) trustR) trusteeS) trustee's deedT) trustor

Question 12

Choose the one most appropriate answer for each.
-a three party arrangement involving a trustor, trustee, and beneficiary

Accepted Answer

A)  accepted form
B)  assignment of rents
C)  automatic form
D)  bare title
E)  beneficiaryF) deed of trustG) defaultH) foreclosureI) junior claimsJ) naked titleK) no statutory redemptionL) power of saleM) public trusteeN) reconveyance deedO) release deedP) request for reconveyanceQ) trustR) trusteeS) trustee's deedT) trustor

Question 13

One of the main differences between a regular mortgage and a deed of trust is

Accepted Answer

A)   the number of parties.
B)   rights of possession.
C)   recording.
D)   ownership.

Question 14

Choose the one most appropriate answer for each.
-any claim behind a first lien

Accepted Answer

A)  accepted form
B)  assignment of rents
C)  automatic form
D)  bare title
E)  beneficiaryF) deed of trustG) defaultH) foreclosureI) junior claimsJ) naked titleK) no statutory redemptionL) power of saleM) public trusteeN) reconveyance deedO) release deedP) request for reconveyanceQ) trustR) trusteeS) trustee's deedT) trustor

Question 15

Under the ____________________ of ____________________ clause, if the borrower defaults, the trustee has the right to sell the property and convey ownership to the purchaser.

Accepted Answer

The answer of Under the ____________________ of ____________________ clause, if...

Question 16

When a property is financed by means of a deed of trust, to whom are the payments made?

Accepted Answer

A)   Beneficiary
B)   Trustor
C)   Trustee
D)   Grantee

Question 17

If an owner pays the full amount of the debt just before his property is sold at auction, he is probably exercising his right of redemption.

Accepted Answer

A) True 
 B)False

Question 18

When a person signs a note with no guarantee to the person receiving it, he is said to be signing it

Accepted Answer

A)   with recourse.
B)   without recourse.
C)   in blank.
D)   jointly and severally.

Question 19

Upon default by the borrower under a deed of trust, the trustor issues a notice of default.

Accepted Answer

A) True 
 B)False  False

Question 20

Choose the one most appropriate answer for each.
-a publicly appointed official who acts as a trustee in some states

Accepted Answer

A)  accepted form
B)  assignment of rents
C)  automatic form
D)  bare title
E)  beneficiaryF) deed of trustG) defaultH) foreclosureI) junior claimsJ) naked titleK) no statutory redemptionL) power of saleM) public trusteeN) reconveyance deedO) release deedP) request for reconveyanceQ) trustR) trusteeS) trustee's deedT) trustor

Exam 9: Deed of Trust

A borrower defaults on a deed of trust loan. Before the lender can foreclose, the lender must

Correct AnswerverifiedShow Answer

A trust deed can be used for all of the following EXCEPT

Correct AnswerverifiedD

Choose the one most appropriate answer for each. -the trustee is notified in advance and either accepts or rejects the appointment

Correct AnswerverifiedShow Answer

The borrower receives naked title under a deed of trust.

Correct AnswerverifiedShow Answer

Under a deed of trust, reconveyance is issued by the

Correct AnswerverifiedC

The trustee in a deed of trust is a neutral ____________________ party.

Correct AnswerverifiedShow Answer

One major advantage of a deed of trust over a mortgage is the time between default and foreclosure is relatively short.

Correct AnswerverifiedShow Answer

The funds for a loan secured by a deed of trust are supplied by the beneficiary.

Correct AnswerverifiedShow Answer

When a debt secured by a deed of trust is paid off, naked legal title reverts to the borrower from the

Correct AnswerverifiedShow Answer

Choose the one most appropriate answer for each. -the trustee is named in the deed of trust but not personally notified of the appointment

Correct AnswerverifiedShow Answer

Choose the one most appropriate answer for each. -what the trustee issues to the borrower;also known as a reconveyance deed

Correct AnswerverifiedShow Answer

Choose the one most appropriate answer for each. -a three party arrangement involving a trustor, trustee, and beneficiary

Correct AnswerverifiedShow Answer

One of the main differences between a regular mortgage and a deed of trust is

Correct AnswerverifiedShow Answer

Choose the one most appropriate answer for each. -any claim behind a first lien

Correct AnswerverifiedShow Answer

Under the ____________________ of ____________________ clause, if the borrower defaults, the trustee has the right to sell the property and convey ownership to the purchaser.

Correct AnswerverifiedShow Answer

When a property is financed by means of a deed of trust, to whom are the payments made?

Correct AnswerverifiedShow Answer

If an owner pays the full amount of the debt just before his property is sold at auction, he is probably exercising his right of redemption.

Correct AnswerverifiedShow Answer

When a person signs a note with no guarantee to the person receiving it, he is said to be signing it

Correct AnswerverifiedShow Answer

Upon default by the borrower under a deed of trust, the trustor issues a notice of default.

Correct AnswerverifiedFalse

Choose the one most appropriate answer for each. -a publicly appointed official who acts as a trustee in some states

Correct AnswerverifiedShow Answer

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D

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C

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Under the of clause, if the borrower defaults, the trustee has the right to sell the property and convey ownership to the purchaser.

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False

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