Question

1. A deed conveys: 1) title of the property from the seller to the buyer 2) identification of the buyer and the seller 3) both of the above 4) none of the above

2. In verification of a loan, the lender: 1) will have to verify the existence and worth of other assets 2) will require at least a two-year history of income from all sources 3) will verify the credit standing of the applicant 4) all the above 5) both (1) and (3)

3. The FHA requires that a self-employed borrower must have been self-employed for at least two years. 1) True 2) False

4. Foreclosure is a process that: 1) returns the property to a borrower when the loan is paid off 2) is consistent in all states as required by federal law 3) is exercised by a buyer of the property 4) none of the above

Answer 1

1. A deed conveys: (3) Both of the above

Explanation :

A deed document must clearly identify the party giving up ownership (grantor) and the party acquiring that ownership (grantee).

A grantis the term used to specify the act of conveying ownership.

To be enforceable by law, a grantor must have reached the legal age.

2. In verification of a loan, the lender : (4) All of the above

Explanation : Getting a loan requires a thorough analysis of income, assets and credit. Self-employed borrowers must document their earnings through tax returns and the lender must be able to verify the employment.

3. The FHA requires that a self-employed borrower must have been self-employed for at least two years. 1) True

Explanation : The Federal Housing Administration (FHA) requires at least two years' worth of signed, dated individual tax returns, with all applicable tax schedules.

4. Foreclosure is a process that: (4) none of the above

Explanation : Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.