Which of the following correctly describes how CalHFA down payment assistance is structured in a California residential purchase transaction?
Correct Answer
A) CalHFA assistance is provided as a deferred-payment junior lien recorded behind the buyer's first mortgage
CalHFA down payment assistance programs are structured as deferred-payment subordinate loans — commonly called 'silent seconds' — that are recorded as junior liens behind the buyer's first mortgage deed of trust. The escrow officer must ensure the subordinate loan documents are executed correctly and recorded in proper lien priority order: the first mortgage records first, establishing senior lien position, and the CalHFA subordinate loan records second. This lien priority structure is a program requirement and a critical escrow compliance obligation.
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In a California residential transaction, the escrow officer informs the buyer that certain items are prorated at closing. Which of the following is MOST commonly prorated between buyer and seller at closing?
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A buyer in California records her grant deed at the county recorder's office immediately after closing. The primary purpose of recording the deed in California is to: