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15 Cards in this Set
- Front
- Back
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Acceleration Clause
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The clause in a mortgage or deed of trust that can be enforced to make the enire debt due immediately if the borrower defaults on an installment payment or other covenant
page 245 |
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Alienation Clause
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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
page 248 |
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Assume
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When a buyer takes over a sellers mortgage and makes the payments, piti and taxes but upon default the seller will be held responsible if there is a balance on the loan after the property is sold by the lender and the sale does not satisfy the entire amount of the debt.
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Beneficiary
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The person for whom a trust operates or in whose behalf the income from a trust estate is drawn.
(2)A lender in a deed of trust loan transaction page 140 |
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Deed in lieu of forclosure
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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 forclosure
page 250 |
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Deed of Trust
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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 the note holder (the lender)
page 141 |
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Defeasance Clause
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A clause used in leases and mortgages that cancels a specified right upon the occurrence of a certain condition, such as a cancellation of a mortgage upon repayment of the mortgage loan
page 246 |
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Deficency Judgement
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A personal judgment levied against the borrower when a foreclosure sale does not produce sufficient funds to pay the mortgage debt in full
page 247 |
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Discount point
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A unit of measurement used for various loan charges, one point equals one percent of the amount of the loan
page 242 |
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Equitable right of redemption
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The right of a defaulted property owner to recover the property prior to its sale by paying the appropriate fees and charges
page 180 |
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Foreclosure
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A legal proceedure 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 in the mortgage document. the foreclosure proceedure brings the rights of all parties to a conclusion and passes the title in the mortgaged property to either the holder of the mortgage or a third party who may purchase the realty at the foreclosure sale, free of all encumbrances affecting the property subsequent to the mortgage
page 249 |
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Hypothecate
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To pledge the property as asecurity for an obligation or loan without giving up possession of it.
page 240 |
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Interest
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A charge made by a lender for the use of money
page 9 |
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Intermediate theory
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Adopted by a number of states, a theory based on the principles of the title theory but requires the mortgagee forclose to obtain legal title.
page 240 |
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Lien theory
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Some states interpret a mortgage as being purely a lien on real property. the mortgagee thus has no right of possession but must foreclose the lien and sell the property if the mortgagor defaults
page 240 |
