The CE Shop » Sales License » 45-HR. CA REAL ESTATE PRACTICE COURSE » Summer 2021

Question #1

Douglas is selling his home by a short sale. What likely happened recently in Douglas’s life?

A. He lost his job.

B. He got married.

C. He declared bankruptcy.

D. He was foreclosed upon.

Question #2

Melissa hasn’t paid her mortgage in months. What action can the lender take to recover monies owed?

A. Foreclosure

B. Bankruptcy

C. Condemnation

D. Short sale

Question #3

What does an REO on a lender’s assets mean?

A. The lender prepares property management agreements.

B. The lender received proceeds from a foreclosure sale.

C. The lender has agreements with real estate listing agents.

D. The lender owns real estate after a foreclosure sale.

Question #4

While any distressed property can have title transfer issues, why is an REO less likely to be subject to unpaid tax liens?

A. Lenders have already forced homeowners to pay unpaid property taxes during the foreclosure process.

B. Buyers who purchase REO properties are required to include back property taxes in their purchase.

C. Lenders want REO properties to sell quickly, so they're likely to have resolved unpaid tax lien issues.

D. County and local governments are required to abate unpaid property taxes on REOs.