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48 Cards in this Set

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Define acceleration:
asking for the loan to be paid in full base on the borrowers' having broken the original promise to repay with regular payments
Define acceleration clause:
the clause in a mortgage or deed of trust that can enforced to make the entire debt due immediately if the borrower defaults on an installment payment or other covenant
Define 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 lenders option if the property is sold by the borrower--in effect this clause prevents the borrowerfrom assigning the debt without the lenders approval
Define beneficiary:
1)the person for whom a trust operates or on whose behalf the income from a trust estate is drawn
2)a lender in a deed of trust loan transaction
Define certificate of sale:
the statement of opinion on the status of the title to a parcel of rel property based on an examination of specified public records
Define deed in lieu of foreclosure:
a deed given by the mortgagor to the mortgagee when the mortgagor is in default under the terms of the mortgage--this is a way for the mortgagor to avoid foreclosure
Define deed of reconveyance:
a document that transfers all rights given a trustee under a deed of trust loan back to the grantor after the loan has been fully repaid
Define deed of trust:
an instrument used to create a mortgage lien by which the borrower conveys title to a trustee,who holds it as security for the benefit of he note holder(the lender)
Define defeasance clause:
a clause used in leases and mortgages that cancels a specified right upon the occurence of a certain condition,such as cancellation of a mortgage on repayment of the mortgage loan
Define deficiency judgement:
a personal judgement levied against the borrower when foreclosure sale does not produce sufficient funds to pay the mortgage debt in full
Define discount points:
a unit of measurement used for various loan charges;one point equals 1 percent of the amount of the loan
Define equitable right of redemption:
the right of a defaulted property owner to recover the property prior to its sale by paying the appropriate fees and charges
Define escrow account:
the trust account established by a broker under the provisions of the license law for the purpose of holding funds on behalf of the broker's principal or some other person until the consummation or termination of a transaction
Define equitable title:
the interest held by a vendee under a contract for deed or an installment contract--the equitable right to obtain absolute ownership to property when legal title is held in another's name
Define foreclosure:
a legal procedure whereby property used as security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms inthe mortgage document
Define hypothecation:
the pledging of property as security for payment of a loan without actually surrending possession of the property
Define impound account:
a reserve fund to meet future real estate taxes and property insurance premiums
Define interest:
a charge made by a lender for the use of money
Define intermediate theory:
the principles of title theory states but still requiring the mortgagee to formally foreclose to obtain legal title--used in IL
Define judical foreclosure:
allows the property to be sold by court order after the mortgagee has given sufficient public notice
Define judicial sale:
sale by which the court sells the property to repay creditors
Define land contract:
a contract for the sale of real estate whereby the purchase price is paid in periodic installments by the purchaser,who is in possession of the property even though title is retained by the seller until all payments are received in full
Define lien theory:
some states interpret a mortgage as being purely a lien on real property
Define loan amount:
amount of monies borrowed to secure the purchase of real property
Define loan orgination fee:
a fee charged to the borrower by the lender for making mortgage loan--fee is usually computed as a percentage of the loan amount
Define mortgage:
a conditional transfer or pledge of real estate as security for the payment of a debt--also the document creating a mortgage lien
Define mortgagee:
a lender in a mortgage loan transaction
Define mortgagor:
a borrower in a mortgage loan transaction
Define negotiable instrument:
a written promise or order to pay a specific sum of money that may be transferred by endorsement or delivery--the transferee the has the original payee's right to payment
Define non-judical foreclosure:
foreclosure which requires no court action is required
Define note:
a financing instrument that states the terms of the underlying obligation,is signed by its marker,and is negotiable
Define prepayment penalty:
a charge imposed on a borrower who pays off the loan principal early
Define promissory note:
a financing instrument that states the terms of the underlying obligation,is signed by its maker,and is negotiable
Define release deed:
a document that transfers all rights given a trustee under a deed of trust loan back to the grantor after the loan has benn fully repaid
Define satisfaction of mortgage:
a document acknowledging the payment of a motgage debt
Define statutory right of redemption:
the right of a defaulted property owner to recover the property after its sale by paying the appropriate fees and charges
Define strict foreclosure:
the foreclosure process by which lender may aquire mortgaged property--first,appropriate notice must be given to the delinquent borrower;second,once the properpapers have been prepared and recorded,the court establishes a deadline by which time the balance of the defaulted debt must be paid in full
Define title theory:
some states interpret a mortgage to mean that the lender is the ownerof mortgaged land--on full payment of the mortgage debt the borrower becomes the landowner
Define trust account:
an escrow account
Define usary:
charging interest at a higher rate than the maximum rate established by state law
Name the 2 parties in a mortgage:
1)mortgagee
2)mortgagor
Name the 3 mortgage theories:
1)title theory
2)lien theory
3)intermediate theory
IL is a(n)__________ theory state.
intermediate
Name the 3 parties in a deed of trust:
1)trustor
2)trustee
3)beneficiary
There can be no prepayment penalty when the interest rate is ______________.
greater than 8%
What are the 3 methods of foreclosure?
1)nonjudical
2)judicial
3)strict
An alternative to foreclosure is ___________________.
lien of foreclosure
Who would the excess funds go to after a foreclosure sale?
mortgagor