1. The process by which a creditor may legally take a debtors real property to satisfy a debt secured by that property is called:

eminent domain.

foreclosure.

mortgage.

search and seizure.

2. When a lender postpones part or all of the payments on a loan for a limited time to give a defaulting borrower time to make mortgage payments, it is called:

forbearance.

foreclosure.

a workout agreement.

a short sale.

3. When a surety pays a debt owed to a creditor, he gains the rights that the creditor had against the debtor. This is called the right of:

subrogation.

contribution.

judgment.

guarantee.

4. Failure to pay a debt for having a car bumper replaced and painted to match the car would lead to:

a creditors composition agreement.

an artisans lien.

mortgage foreclosure.

a mechanics lien.

5. If a company installs windows in a home, but the homeowner fails to pay, the company can place which of the following on the property?

mechanic's lien

artisan's lien

possession lien

homeowner's lien

6. If a jeweler repairs a necklace for a customer, who fails to pay, the jeweler may place which of the following on the necklace?

artisan's lien

judicial lien

foreclosure lien

jeweler's lien

7. Which of the following is a way a debtor can avoid foreclosure after default on a mortgage? (select two)

workout agreement

garnishment

forbearance

suretyship

8. The right of redemption allows a defaulting borrower to:

avoid foreclosure by paying the amount they are behind on their loan.

return their home to the mortgage holder and not have it impact their credit report.

avoid losing their home by reaffirming their debt.

pay the full amount of the debt and regain their home.

9. In a suretyship, primary liability means the surety will be liable:

only after the judgment by the court.

at any time.

only after the debtor defaults.

only if the debtor is in default for 90 days.

10. Which of the following defenses may a surety or guarantor raise? Choose 2 answers.

Incapacity of the principal debtor

Statute of limitations

Fraud against the surety

Bankruptcy of the surety