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CHAPTER 8 – Introduction to Real Estate Finance:
1. What is Leverage? What is Usury? What is an Alienation Clause?
2. Describe the three types of promissory notes. What are their differences?
3. What is hypothecation? What is a deficiency judgment?
4. Name the three parties to a Deed of Trust. Describe each party (who are they)? Why do lenders in California prefer Deeds of Trust over Mortgages? Be specific.
5. Explain all of the steps that a lender must take to initiate a foreclosure once the borrower defaults.
Please number your responses to match the questions.
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