40 and 41 An important distinction between a deed of trust and a mortgage is The

Question

40 and 41 An important distinction between a deed of trust and a mortgage is The mortgagee can obtain a deficiency judgement in a foreclosure The trustor of a deed of trust can obtain a deficiency judgement The deed of trust requires a judicial proceeding in order for the lende property. If the trustee has a loss from the sale of the property they automatic judgement. Priority of lien means: The largest lien holder is paid first. The lien that is recorded first has priority over liens recorded subsc The borrower can determine which lienholder get paid first in a for In a foreclosure, the sale proceeds are allocated based on the pro You are evaluating an Adjustable Rate Mortgage

Explanation / Answer

40. A. the mortgagor can obtain a deficiency judgement in a foreclosure

Explanation: The primary disticntion between the mortgage and a trust deed is only when it comes to foreclosure. In case of mortgage the mortgagee acquires the right of foreclosure and can obtain a deficiency judgement in a foreclosure.

41. D. In a foreclosure, the sale proceeds are allocated based on the

Explanation: Priority of lien sets down the priority of creditors to get paid in case of foreclosure. the priorty of lien sets down the right of creditors to be paid in the event of foreclosure and the sale proceeds are allocated based on the priorty of lien.

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