CA Real Estate Finance Course » 2021 » Sec 7 Unit 5 Exam

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Question #1
A homeowner has been paying her mortgage for several years and has built up equity. She decides to take out a home equity line of credit because she needs some cash. This credit will create ______.
A.   Negative amortization on her mortgage
B.   An addition to the principal on her mortgage
C.   A junior lien on the property
D.   A subordination of her mortgage
Question #2
The Morris family home went into foreclosure December 15, 2016, and sold January 1, 2017. Their contractor had begun work on May 15, 2015, and was not paid, and finally filed a mechanic’s lien on October 1, 2016. What date will be used for lien priority for the mechanic’s lien?
A.   December 15, 2016
B.   January 1, 2017
C.   October 1, 2016
D.   May 15, 2015
Question #3
A foreclosure occurs January 1, 2016. Of the following, which lien takes priority?
A.   A mechanic's lien filed February 15, 2014, where work commenced December 1, 2013
B.   A property tax lien filed January 1, 2014
C.   A junior mortgage filed January 1, 2015
D.   A senior mortgage filed October 15, 2013
Question #4
Which of the following is true about a home equity line of credit?
A.   It takes priority over the original financing for the home
B.   A borrower can use the funds as needed, repay them, and borrow them again.
C.   Any amount used must be repaid before additional funds can be accessed.
D.   It's a lump sum payment.

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