Illinois Real Estate Exam Prep Quiz: Trivia!

A two-to-four family property refers to a residential property that has dwelling units specifically designed for two to four families. In this case, the ownership of the property is held in a single deed, meaning that all the units within the property are owned by the same person or entity. This is different from the other options provided, as they either involve multiple deeds or do not specify the number of dwelling units for families.

A fixed-rate mortgage loan is a type of real estate loan where the interest rate remains the same throughout the entire term of the loan. This provides stability for the borrower as they know exactly how much their monthly payments will be. An adjustable-rate mortgage loan, on the other hand, has an interest rate that can fluctuate over time. Both of these options are commonly used in real estate financing.

If you never received the notice of default, it can be removed because you were not aware of the situation and therefore unable to respond. It is important to have evidence or documentation to support your claim that you did not receive the notice.

The mortgagee can file for a deficiency judgement if the promissory note was made with a recourse clause, which means the borrower is personally liable for any remaining debt after foreclosure. Additionally, the mortgagee can also file for a deficiency judgement if the sale of the property does not bring in enough money to cover the outstanding balance of the loan and any associated fees. Therefore, the correct answer is A & B.

C & I loans refer to loans made to both businesses and individuals. These loans can be short-term and are typically secured with collateral owned by the borrower. Therefore, option A, which states that C & I loans are short-term loans secured with collateral owned by the business, is correct. Option B, which states that C & I loans are loans to businesses, is also correct.

Insurance companies usually make loans through mortgage companies. Mortgage companies specialize in providing loans for purchasing real estate, and insurance companies often collaborate with them to offer financing options to their customers. This partnership allows insurance companies to diversify their investment portfolio and generate additional revenue through interest payments on these loans. Loan associations, VA, and FHA are not typically involved in providing loans for insurance companies.

The statement "A Deed of Trust is an agreement between a lender and a borrower. During the repayment, the borrower retains the legal title" is not true. In a Deed of Trust, the borrower actually transfers the legal title of the property to a trustee, who holds it as security for the lender. The borrower retains equitable title and has the right to possess and use the property, but the legal title is held by the trustee until the loan is fully repaid.

A contingency fund is necessary to improve a company's financial stability by providing a reserve of funds that can be used to address emergency needs. This fund serves as a safety measure, allowing the company to handle unexpected expenses or financial setbacks without relying on external sources like loans. By having a contingency fund in place, the company can maintain its financial stability and avoid potential disruptions to its operations.

The Trustee in a Deed of Trust must be impartial. This means that they must be unbiased and not favor any party involved in the transaction. As a neutral third party, the Trustee's role is to ensure that the terms of the Deed of Trust are followed and that the interests of all parties are protected. Being impartial helps to maintain the integrity and fairness of the transaction.

Regulation Z, also known as the Truth in Lending Act, requires lenders to provide consumers with clear and accurate information about the costs and terms of credit. It ensures that consumers have access to important information such as the annual percentage rate (APR), finance charges, and terms of repayment. By knowing the true cost of obtaining credit, consumers can make informed decisions and compare different credit options. This regulation applies to both consumer and commercial loans, making option A the correct answer.