ContractsInstallment_contracts_and_land_contractsEASY
Under a traditional contract for deed, what risk does the buyer face if the seller has an existing mortgage on the property?
Correct Answer
A) The buyer could lose the property if the seller defaults on the existing mortgage
If the seller has an existing mortgage and defaults on it, the lender could foreclose, and the buyer could lose the property even though the buyer has been making payments to the seller.
Answer Options
A
The buyer could lose the property if the seller defaults on the existing mortgageB
No risk, because the seller's mortgage is automatically paid offC
The buyer's payments go directly to the seller's bankD
The existing mortgage is transferred to the buyerWhy This Is the Correct Answer
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Key Terms:
installment_contracts_and_land_contractscontractsriskexisting_mortgage
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