Real Estate 100

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.