Provide a brief but complete response for each of the questions listed below in a Microsoft Word document. Your work must be original, except for any definitions that you may quote from the textbook. Provide APA-format, in-text citations for each of your answers and a complete reference line at the bottom of the submission. Please use in-text citations of outside academic sources for each question.
CHAPTER 1 – QUESTIONS
1. What is the difference between real property and personal property?
2. What is meant by an estate?
3. How can a leased fee estate have a value that could be transferred to another party?
4. What is an abstract of title?
5. Name the three general methods of title assurance and briefly describe each. Which would you recommend to a friend purchasing a home? Why?
6. Would it be legal for you to give a quitclaim deed for the Statue of Liberty to your friend?
CHAPTER 2 – QUESTIONS
5. What does “assignment” mean and why would a lender want to assign a mortgage loan?
7. What does default mean? Does it occur only when borrowers fail to make scheduled loan payments?
13. What is meant by mortgage foreclosure, and what alternatives are there to such action?
17. What special advantages does a mortgagee have in bidding at the foreclosure sale where the mortgagee is the foreclosing party? How much will the mortgagee normally bid at the sale?
CHAPTER 2 – PROBLEMS
2. Last year Jones obtained a mortgage loan for $100,000. He just inherited a large sum of money and is contemplating prepaying the entire loan balance to save interest. What are his rights to prepay the loan?
4. Mr. Smith acquired a property consisting of one acre of land and a two-story building five years ago for $100,000. He also obtained an $80,000 mortgage loan from ACE Bank to provide financing to complete the purchase. This year, Mr. Smith constructed another building on the property with his own funds at a cost of $20,000. Mr. Smith has decided after completing the building to approach Duce Bank to borrow and mortgage the new building with a $16,000 loan. Is Duce Bank likely to provide the $16,000 in financing? What other options may Mr. Smith have to consider?
5. Ms. Brown purchased a property consisting of one acre of land and a building for $100,000 five years ago. She obtained an $80,000 mortgage loan from ABC Bank at that time. The building was very old and Ms. Brown has just had it torn down. She now wants to build a new building. Ms. Brown hopes to finance construction with ABC Bank and will call them soon to discuss financing the new project. How will ABC Bank evaluate the possibility of making another loan to Ms. Brown?
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