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16 Cards in this Set
- Front
- Back
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Loan Origination Fee
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A fee charged to the borrower by the lender for making a mortgage loan. the fee is usually computed as a percentage of the loan amount
page 242 |
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Mortgage
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A conditional transfer or pledge of real estate as security for the payment of a debt. also, the document creating a mortgage lien
page 239 |
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Mortgagee
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A lender in a mortgage loan transaction
page 239 |
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Mortgagor
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A borrowerr in a mortgage loan transaction
page 239 |
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Negotiable instrument
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A written promise or order to pay a specific sum of money that may be transferred by endorsement or delivery. The transferee then has the original payee's right to payment.
page 241 |
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Promissory note
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A financing instrument that states the terms of the underlying obligation, is signed by its maker, and is negotiable (transferable to a third party)
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Novation
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The seller(s), buyer(s), and lender must execute a novation agreement in writing if the seller wants to be completely free of the orginal mortgage loan. The novation makes the buyer (assumer) solely responsible for any default on the loan. the original borrower (seler) is freed of any liability for the loan
page 247 |
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Owner Financing
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In land contracts the owner, (vendor) will allow the Buyer (vendee) to make payments with interest, insurance, tax and principal while using the property rights. When the loan is repaid the owner transfers the title and deed to the buyer. If the buyer does not pay or defaults, the owner Vendor, may take back the land and property and not be obligated to return any money or repayment.
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Prepayment Penalty
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A charge imposed on a borrower who pays off the loan principal early. This penalty compensates the lender for interest and other charges that would otherwise be lost.
page 242 |
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Release Deed
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A document, also known as a deed of reconveyance, that transfers all rights given a trustee under a deed of trust loan back to the grantor after the loan has been fully repaid
page 246 |
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Satisfaction of Mortgage
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A document acknowledging the payment of a mortgage debt
page 246 |
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Statutory right of redemption
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The right of a defaulted property owner to recover the property after its sale by paying the appropriate fees and charges
page 181 |
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Subject to
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When property is sold subject to; the buyer is not personally obligated to pay the debt in ful;l. The buyer takes title to the real estate knowing that he or she must make payments on the existing loan. Upon default the lender forcloses tand the property is sold by court order to pay the debt. If the sale does not pay off the entire debt, the purchaser is not liable fo the difference in some circumstances, however, the original seller might continue to be liable.
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Title theory
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Some states interpret a mortgage to mean that the lender is the owner of a mortgaged land. Upon full payment of the mortgage debt, the borrower becomes the landowner.
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Trustor
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A borrower in a deed of trust loan transaction; one who places property in a trust. Also called a grantor or settler.
page 140 |
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Usury
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Charging interest at a higher rate than the maximum rate established by state law
page 241 |
