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11 Cards in this Set
- Front
- Back
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mortgage |
a voluntary lien on real estate |
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mortgagor |
the borrower of a loan |
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mortgagee |
the lender of the loan |
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title theory states |
the mortgagor actually gives legal title to the mortgagee and retains equitable title. |
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lien theory states |
the mortgagor/borrower holds both legal and equitable title. The mortgagee/lender simply has a lien on the property as security for the mortgage debt. |
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defeasance clause |
title must be fully reconveyed, or released back, to the mortgagor at the time the debt is repaid in full. |
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hypothecation |
to pledge property as security for an obligation or loan without giving up possession of it. |
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promissory note (a note or financing instrument) |
is the borrowers personal promise to repay a debt according to agreed terms. |
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usury |
charging interested in excess of the maximum rate allowed by law |
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acceleration clause |
the clause in a mortgage or deed of trust that can be enforced to make the entire debt due immediately if the borrower defaults on an installment payment or other covenant |
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alienation clause |
the clause in a mortgage or deed of trust that states that the balance of the secured debt becomes immediately due and payable at the lender's option if the property is sold by the borrower. In effect, this clause prevents the borrower from assigning the debt without the lender's approval. |
