An Alaska property is sold at foreclosure for less than the outstanding loan balance. The difference the borrower may owe the lender is called:
Why A deficiency judgment Is Correct
Answer B: A deficiency judgment
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
People Also Study
Related Alaska Questions
- In Alaska, which type of mortgage clause allows the lender to demand full repayment of the loan upon the property's sale?Finance
- Which type of mortgage clause allows a lender to accelerate the entire loan balance when the borrower defaults?Finance
- An Alaska property sold for $350,000. The seller's remaining mortgage balance was $185,000, commission was 6%, and other closing costs were $2,500. What are the seller's net proceeds?Real Estate Math
- In Alaska, a 'deed in lieu of foreclosure' allows a borrower to:Escrow & Title
- An Alaska property has a mortgage constant of 7.2% and an NOI of $54,000. If the debt coverage ratio requirement is 1.2, what is the maximum loan amount the lender would approve?Finance
- In Alaska, a borrower whose credit score drops between the time of loan application and closing may find that the lender:Finance
- In Alaska, a property sold at a foreclosure sale may be redeemed by the former owner during the statutory redemption period by:Property Ownership
- In Alaska, a real estate licensee who pays a kickback to a lender in exchange for loan referrals:Alaska License Law
Key Terms to Know
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →