CHOOSE THE BESTANSWERFROM A,B, C, OR D

One paragraph

Essentials of Real Estate Investment Eleventh Edition Unit 6 Quiz 1. A property is encumbered by both a senior and junior loan. If the property is sold at foreclosure, after costs, the a. junior lender will be paid first. b. senior lender will be paid first. c. courts will decide how to divide the proceeds. d. senior lender is required to pay the balance of the junior loan. 2. Your client wishes to purchase an apartment building and assume the existing mortgage at the original interest rate. There is no due-on-sale clause in the mortgage. Your client a. may assume the mortgage whether qualified or not. b. may assume the mortgage only if qualified. c. must renegotiate the loan. d. none of these. 3. Rollover loans are advantageous to lenders because a. they have short payout periods. b. they allow interest rates to be adjusted. c. there are no due-on-sale clauses in the loans. d. they can automatically be rolled over to the next buyer. 4. After the notice of foreclosure of a note and mortgage, the borrower can a. no longer bring the loan current and regain the property. b. bring the loan current at anytime. c. bring the loan current anytime until the auction sale of the property. d. make partial payments and regain the property. 5. Assume a property is to be sold for $100,000 with a $10,000 cash down payment and the balance to be carried back as a wraparound loan by the seller at 10% interest-only for five years. The existing loan balance is $70,000 at 8% interest. What is the seller's yield on the equity in the wrap? Choose the answer closest to your calculation. a. 8% b. 10% c. 17% d. 45% check the interest rates, placement rates, and terms of real estate loans available in your geographic area to finance real estate investment property. One paragraph 2016 Kaplan, Inc. May be reproduced for educational uses only