Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/22

Click to flip

22 Cards in this Set

  • Front
  • Back
When an owner uses a property as security for a loan, but does not give up possession this is called ________.
HYPOTHECATION
A netural third party is part of what?

(filing the..)
TRUST DEED (TITLE)
In a trust deed, who is the trustor?
THE BORROWER
Who owns bare legal title to a property encumbered by a trust deed?

( who usually is this party)
THE TRUSTEE

(the trustee is usually the title company who has a duty to the bank or loan agency)
The purpose of a reconveyance deed is what?
TO DEED THE PROPERTY TO THE BORROWER AFTER A NOTE SECURED BY THE DEED HAS BEEN PAID IN FULL.
An "or more" clause allows what in a loan?
TO PAY OFF LOAN EARLY WITH NO PENALTY/
Someone who buys an existing negotiable note is known as:
THE HOLDER IN DUE COURSE

( taken usually for consideration in good faith that loan is current and in good standing)
What is the remedy for default of payment on a "note"
FORECLOSURE
Who must sign the reconveyance deed?
THE TRUSTEE
The promissory note is the ______ of the debt and the trust deed is the ______ for the debt.
1) EVIDENCE

2) SECURITY
When a person uses the lender's money to purchase a home, this is known as _____
LEVERAGE
What are the requirements of a Promissory Note? (6)
1) Writting
2) Legal Capisity to Contract
3) Signed by Borrower
4) Payable on demand at a given time
5) Paid to bearer
6) Voluntarity delivered by borrower
An interest only note is referred to as an _______ note.
STRAIGHT
A payment that includes periodic payments that are FIXED and include both principal and interest are ______________ Notes.
FULLY AMORTIZED INSTALLMENT NOTES
A Note where the interest can change up or down on the term of the loan.
ADJUSTABLE NOTE

( Known as a ARM Adjustable Rate Mortgage)
The parties of a trust deed include:
1) Trustor: BORROWER
2) Trustee: Neutral Party holds the title
32) BENEFICIARY: Lender: Holds note
The fact that the "owner" has the rights to all increase of equity in the property is known as:
EQUITABLE TITLE
A ____________ is a judgement against a borrower for the unpaid amount and interest of a loan when a borrower defaults on a loan.
DEFICIENCY JUDGEMENT
If the borrower can get their loan payment up to date within FIVE days of the trusee sale, this causes ___________ of the loan to occur.
REINSTATEMENT

( loan continues as if there were no laspes, though credit may be damaged for showing 60 or 90 day late payments)
In California, most loans pass through a _______ deed.
TRUST DEED

*Easier forclosure process. Trusee holds title which makes things faster and easier in case of default.
When a party is behind in loan payments, what NOTICE must be filed to begin the forclosue process?
NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST
What is the time frame for forclosure from start to finish ( minimum)
THREE MONTHS AND 21 DAYS

( three months for Notice to satisfy the loan..20 days after the notice is served)