Finance
In Louisiana, a 'purchase money mortgage' has a special status in the event of the seller's default compared to other debts because:
AIt is automatically insured by the state
BThe vendor's privilege (seller's lien) gives the seller priority over other creditors for the unpaid purchase price secured by the property sold✓ Correct
CIt cannot be foreclosed in Louisiana
DThe lender can take the property without court proceedings
Explanation
The vendor's privilege in Louisiana gives the seller who provided financing (purchase money mortgage) a special priority lien for the unpaid purchase price — potentially superior to other contemporaneous claims on the property that was sold.
Related Louisiana Finance Questions
- A Louisiana mortgage lender may not charge a prepayment penalty on certain residential loans under federal law because:
- In Louisiana, a mortgage lien is generally released from the public records by filing a:
- Private mortgage insurance (PMI) is typically required when the buyer's down payment is:
- The National Flood Insurance Program (NFIP) is particularly important in Louisiana because:
- Which of the following would be considered a non-conforming loan?
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- Which of the following is NOT a closing cost typically paid by the buyer in Louisiana?
- An adjustable rate mortgage (ARM) in Louisiana has an interest rate that:
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