A promissory note represents:

Question 1 options:

1)	the borrowers promise to obtain a loan

2)	the borrowers promise to repay a loan

3)

a deed

4)	the lenders promise to make a loan

Question 2 (2 points)

If the value of the property is insufficient to cover the amount of indebtedness in a foreclosure action the lender, in many states, has a right to a:

Question 2 options:

1)	deficiency judgment

2)	non-recourse note

3)	stay of bankruptcy

4)	hearing of deficiency

Question 3 (2 points)

Pursuit of a deficiency judgment by the lender is complicated by the ability of the borrower to file personal bankruptcy.

Question 3 options:

	1) True
	2) False

Question 4 (2 points)

A theory that states that no borrower with substantial positive equity would default, even if unable to make the monthly payments, is:

Question 4 options:

1)	equity theory

2)	bird-in-hand theory

3)	resolution equity theory

4)	equity binding theory

Question 5 (2 points)

The method based on the premise that the buyer will not pay more for a property than for a the expense of constructing a comparable property with the same utility is:

Question 5 options:

1)	the market approach

2)	the income approach

3)	the cost approach

4)	the buyer approach