Il Real Estate Ch#15

Front 1

Define acceleration:

Back 1

asking for the loan to be paid in full base on the borrowers' having broken the original promise to repay with regular payments

Front 2

Define acceleration clause:

Back 2

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

Front 3

Define alienation clause:

Back 3

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

Front 4

Define beneficiary:

Back 4

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

Front 5

Define certificate of sale:

Back 5

the statement of opinion on the status of the title to a parcel of rel property based on an examination of specified public records

Front 6

Define deed in lieu of foreclosure:

Back 6

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

Front 7

Define deed of reconveyance:

Back 7

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

Front 8

Define deed of trust:

Back 8

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)

Front 9

Define defeasance clause:

Back 9

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

Front 10

Define deficiency judgement:

Back 10

a personal judgement levied against the borrower when foreclosure sale does not produce sufficient funds to pay the mortgage debt in full

Front 11

Define discount points:

Back 11

a unit of measurement used for various loan charges;one point equals 1 percent of the amount of the loan

Front 12

Define equitable right of redemption:

Back 12

the right of a defaulted property owner to recover the property prior to its sale by paying the appropriate fees and charges

Front 13

Define escrow account:

Back 13

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

Front 14

Define equitable title:

Back 14

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

Front 15

Define foreclosure:

Back 15

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

Front 16

Define hypothecation:

Back 16

the pledging of property as security for payment of a loan without actually surrending possession of the property

Front 17

Define impound account:

Back 17

a reserve fund to meet future real estate taxes and property insurance premiums

Front 18

Define interest:

Back 18

a charge made by a lender for the use of money

Front 19

Define intermediate theory:

Back 19

the principles of title theory states but still requiring the mortgagee to formally foreclose to obtain legal title--used in IL

Front 20

Define judical foreclosure:

Back 20

allows the property to be sold by court order after the mortgagee has given sufficient public notice

Front 21

Define judicial sale:

Back 21

sale by which the court sells the property to repay creditors

Front 22

Define land contract:

Back 22

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

Front 23

Define lien theory:

Back 23

some states interpret a mortgage as being purely a lien on real property

Front 24

Define loan amount:

Back 24

amount of monies borrowed to secure the purchase of real property

Front 25

Define loan orgination fee:

Back 25

a fee charged to the borrower by the lender for making mortgage loan--fee is usually computed as a percentage of the loan amount

Front 26

Define mortgage:

Back 26

a conditional transfer or pledge of real estate as security for the payment of a debt--also the document creating a mortgage lien

Front 27

Define mortgagee:

Back 27

a lender in a mortgage loan transaction

Front 28

Define mortgagor:

Back 28

a borrower in a mortgage loan transaction

Front 29

Define negotiable instrument:

Back 29

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

Front 30

Define non-judical foreclosure:

Back 30

foreclosure which requires no court action is required

Front 31

Define note:

Back 31

a financing instrument that states the terms of the underlying obligation,is signed by its marker,and is negotiable

Front 32

Define prepayment penalty:

Back 32

a charge imposed on a borrower who pays off the loan principal early

Front 33

Define promissory note:

Back 33

a financing instrument that states the terms of the underlying obligation,is signed by its maker,and is negotiable

Front 34

Define release deed:

Back 34

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

Front 35

Define satisfaction of mortgage:

Back 35

a document acknowledging the payment of a motgage debt

Front 36

Define statutory right of redemption:

Back 36

the right of a defaulted property owner to recover the property after its sale by paying the appropriate fees and charges

Front 37

Define strict foreclosure:

Back 37

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

Front 38

Define title theory:

Back 38

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

Front 39

Define trust account:

Back 39

an escrow account

Front 40

Define usary:

Back 40

charging interest at a higher rate than the maximum rate established by state law

Front 41

Name the 2 parties in a mortgage:

Back 41

1)mortgagee
2)mortgagor

Front 42

Name the 3 mortgage theories:

Back 42

1)title theory
2)lien theory
3)intermediate theory

Front 43

IL is a(n)__________ theory state.

Back 43

intermediate

Front 44

Name the 3 parties in a deed of trust:

Back 44

1)trustor
2)trustee
3)beneficiary

Front 45

There can be no prepayment penalty when the interest rate is ______________.

Back 45

greater than 8%

Front 46

What are the 3 methods of foreclosure?

Back 46

1)nonjudical
2)judicial
3)strict

Front 47

An alternative to foreclosure is ___________________.

Back 47

lien of foreclosure

Front 48

Who would the excess funds go to after a foreclosure sale?

Back 48

mortgagor