Reca Residential Unit 6 |115 Questions| With Correct Answers.

What is a postponement of mortgage {Ans: When a lender agrees (and it is added to title) that their interest will not become a higher priority over another mortgage on title. For example if the first mortgage will expire and be renewed it will lose it's priority so the second mortgage would need to post a postponement of mortgage on title (or else they would not renew the first mortgage because losing it's priority would not be acceptable).}"Equity" meaning {Ans: The market value of the property, less the outstanding balance of the mortgage and any other financial obligation registered against the property}When is compound interest generally used? {Ans: charged on long-term loans (ie. greater than 1 year). Simply interest is generally charged on short-term loans (ie. less than 1 year)}Are REPs authorized to advise clients on seller financing (like if the seller wants to do a VTB vendor take-back mortgage)? {Ans: No, REPs must insure that any seller they are representing who is considering a VTB mortgage obtain legal counsel prior to providing some or all of the financing required for the transaction to proceed.}5 basic steps of a foreclosure process {Ans: 1. Borrower defaults