Which of the Following Statements Is True Regarding a Mortgagee

question 23

Multiple Choice

Which of the following statements is true regarding a mortgagee sale of property?

• A)The mortgagee must sell through a licensed real estate agent.
• B)The mortgagor must be given the first right to purchase the property at a fair price.
• C)The mortgagor is not allowed to attend the sale in case he or she makes a high bid and discourages genuine buyers.
• D)The mortgagor remains liable for any sum owing to the mortgagee after the proceeds of the sale have been distributed.

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Definitions:

Collateral

Property or assets pledged by a borrower to secure a loan or other credit, and subject to seizure on default.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure repayment of a debt.

Financing Statement

A document filed by a creditor to indicate a security interest in the assets of a debtor, typically used in secured transactions.

State Agency

An organization or body created by the government to carry out specific functions on a state level.