Ontario Mortgage Agent Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Ontario Mortgage Agent Exam. Prepare with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for your test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

When does a foreclosure enable the lender to obtain title to a defaulted property?

Before the loan is approved
When the property appreciates in value
After the borrower is free of debt
This policy will compensate the lender for losses incurred in a mortgage transaction

The correct answer is: After the borrower is free of debt

A foreclosure allows the lender to obtain title to a defaulted property after the borrower is free of debt. This means that the borrower has fully paid back the loan or has cleared all outstanding debt related to the property. Options A, B, and D are incorrect because they do not accurately describe when a foreclosure allows the lender to obtain title. Option A is incorrect because a foreclosure happens after the loan is approved, not before. Option B is incorrect because the appreciation of the property's value does not affect when the lender can obtain title through foreclosure. Option D is incorrect because it refers to mortgage insurance, which is not directly related to a foreclosure.