Question

1- A blanket deed of trust covers a single large piece of land. true or false ?

2- The property is deeded to the state only after the owner's five-year redemption period has expired.

True

False

3-Acceleration clause permits a lender to charge a late fee for a tardy loan payment.

True

False

4-1st installment of property taxes is due April 1st.

True

False

5-Only general contractors and subcontractors may obtain mechanic's liens against the owner's property.

True

False

6- The first step in foreclosure is to record a notice of default.

True

False

7-A judgment is valid for 10 years and may not be renewed.

True

False

8-In a deed of trust, the lender is called the trustor and the borrower is called the beneficiary.

True

False

Answer 1

ANS

1. False, it covers two or more pieces of mortgage which makes it easier for the borrower to finance a mortgage.

2. False, the property is transffered to the state before and after which it is bid. Afterwards the owner is provided an option to pay the amount of tax debt if owner pays that amount then they can claim the property and if they can not then they cant. This statement is false because this is not applicable in every state as some state pass the property even at the day of bidding.

3. False, the acceleration clause allows the lender with a provision where he or she can ask for loan repayment if the certain demands are not met. It does not permit the lender for the late fee but it gives the right to lender to ask the borrower to repay the loan or the lender can confiscate the property.

4. False, the 1st installment of property taxes is due on 1st of June and the second are due on 1st of September or after 1 month when the tax bill is mailed.