Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
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) |
