Author Question: If an instrument states no time for payment, the note is payable on demand. Indicate whether the ... (Read 177 times)

LaDunn · **on:** Jun 24, 2018

If an instrument states no time for payment, the note is payable on demand.
Indicate whether the statement is true or false

Question 2

James and Debra Reid purchased a home for 623,000 in January 2014. They put down 62,300 and financed the remainder with Fifth Third Bank. Fifth Third Bank recorded its mortgage on February 1, 2014. On March 31, 2014, the Reids purchased a swimming pool and the pool contractors, Cristoria Pools, financed the construction for 45.000. Cristoria recorded a second mortgage on the property on April 15, 2014. On December 15, 2014, the Reids sold their house to the Griffins for 720,000. The Griffins put 120,000 down and agreed to pay the Reids for the existing mortgage in wrap-around. The mortgage balance at the time of the sale was 619,000. The balance on the Cristoria mortgage was 42,000. On August 15, 2015, the Griffins defaulted on their payments. The Reids had already purchased another home and were unable to make the payments on the home. Fifth Third Bank foreclosed on the mortgage. What if the property were financed through a deed of trust instead of a mortgage, which of the following is true?
A)There are no deficiency judgments under deed of trust financings
B)Only first priority lenders have the right of the power of sale under a deed of trust
C)Cristoria Pools would have first priority under a deed of trust financing arrangement
D)None of the above