Robert owns a home in Lawton, Oklahoma as his primary residence and has significant credit card debt. His creditors have obtained a judgment against him and are attempting to force the sale of his home to satisfy the judgment. Robert's home sits on a 0.75-acre lot within city limits. Which statement best describes Robert's protection under Oklahoma law?
Correct Answer
B) Robert's home is fully protected from forced sale by general creditors because it qualifies as an urban homestead under Oklahoma's constitutional homestead exemption.
Oklahoma's Constitution (Article XII) provides a homestead exemption that protects a family's primary residence from forced sale by general creditors. For urban properties (within a city or town), the homestead exemption covers up to one acre. Robert's 0.75-acre lot is within the one-acre urban limit, so his entire property qualifies for the constitutional homestead protection and cannot be forced into sale by general judgment creditors.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Financing Question
Background Knowledge for Financing
Real World Application in Financing
Common Mistakes to Avoid on Financing Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
More Financing Questions
Which Hawaii rule controls when a lender intends to use power of sale foreclosure on residential property?
A Hawaii licensee is reviewing a candidate asks whether a Hawaii mortgage passes title to the mortgagee. What is the best answer?
Wisconsin recording fees are paid to the:
An appraisal of a Wisconsin dairy farm would most likely use:
Property tax prorations at a Wisconsin closing are typically calculated:
- → The FHA loan program in Wisconsin allows buyers to purchase with as little as:
- → Wisconsin's WHEDA (Wisconsin Housing and Economic Development Authority) assists homebuyers by:
- → Wisconsin foreclosures are:
- → Wisconsin uses which theory of mortgage law?
- → In Utah, what is the standard non-judicial foreclosure process under a deed of trust?
- → After a non-judicial foreclosure sale in Utah, does the borrower have a statutory right of redemption?
- → A Utah lender requires private mortgage insurance (PMI) on a conventional loan. Under what condition can the borrower request PMI cancellation under the federal Homeowners Protection Act?
- → Utah is classified as which type of state regarding the security instrument used for most residential mortgage loans?
- → Under Utah law, which of the following liens generally has the HIGHEST priority?
- → A Utah property has both a first mortgage and a second mortgage. If the first mortgage is foreclosed, what happens to the second mortgage?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Real Estate Exam Practice Questions by Topic (2026): Free Sets for Contracts, Agency, Financing
Get topic-based real estate exam practice sets and a simple sequence to move from learning to timed mocks.
Real Estate Exam Topics (2026): High-Yield Areas + Common Traps (Contracts, Agency, Financing, Fair Housing)
Learn the highest-frequency real estate exam topics and the traps that cause most wrong answers—plus how to study them.
Real Estate Exam Financing: Mortgages, APR, Amortization (2026) + 20 Practice Problems
Learn mortgages, APR, amortization, and the financing questions most likely to appear—plus practice problems.