Under California's anti-deficiency laws, which type of loan typically prevents a lender from suing a borrower for a deficiency after foreclosure?
Why Purchase money loans on owner-occupied residential properties (1-4 units) Is Correct
Answer B: Purchase money loans on owner-occupied residential properties (1-4 units)
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.
Key Finance Terms in This Question
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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.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
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