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87 Cards in this Set
- Front
- Back
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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
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Hypothecation
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To pledge property as security for an obligation or loan without giving possession of it
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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
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Negotiable instrument
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A written promise or oder to pay a specific sum of money that may be transferred by endorsement or delivery. The trasnferee then has the original payee's right to payment.
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Novation
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Substitutin a new obligation for an old one or substituting new parties to an existing obligation. EX: lien
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Owner financing
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Buyer takes property but seller retains title until paid in full
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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
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Subject to clause
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Buyer takes title to a property and makes payments on existing loan but is not legally obligated.
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Title theory
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interpreted to mean the lender is the owner of mortgaged land. when debt is payed borrower becomes owner.
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Trustor
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one who places a property in a trust
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usury
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charging too damn much interest and breaking the law
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Adjustable rate mortgage
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a loan characterized by fluctuating interest rate, usually one tied to a bank
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Amortized loan
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a loan in which the principal as well as the interest is payable in monthly or other periodic installments
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Balloon payments
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A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.
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Blanket loan
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A mortgage covering more than one parcel of real estate, providing for each parcel's partial release from the mortgage lien upon repayment of a definite portion of debt.
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Buydown
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Financing technique used to reduce the monthly payments for the first few years of a loan.
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Certificate of reasonable value
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a form indication the appraised value being financed by a VA loan
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Community reinvestment act CRV
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Financial institutions are expected to meet the deposit and credit needs of their communities; participate and invest in local community development and participate in loans programs for housing.
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Computerized loan origination CLO
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An electronic network for handling loan applications through remote computer terminals linked to several lender's computrers
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Construction loan
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short term
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Conventional loan
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A loan that requires no insurance or guarantee
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Equal Credit Opportunity (ECOA)
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Federal law that prohibits discrimination in the extension of credit because sex, religion, national origin, sex, marital status, age, race, color
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Frannie Mae
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Purchase any kind of mortgage loan in the secondary mortgage market
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Federal deposit insurance corporation (FDIC)
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An independent federal agency that insures the deposits in commercial banks
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federal reserve
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country's central banking system.
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FHA loan
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Loan insured by Federal housing admin and made by approved lender in accordance to standards.
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Freddie Mac
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Purchases only conventional loans
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Ginnie Mae
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FHA and VA loans
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Growing equity mortgage
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A loan in which monthly payments increase annually with the increased amount being used to reduce directly that principle balance outstanding therefore shortening life of loan.
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Index
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An objective economic indicator to which the interest rate for an adjustable rate mortgage is tied
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Loan to value ration
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The relationship between the amount of the mortgage loan and the value of the real estate being pledged as collateral.
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Margin
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A premium added to the index rate representing the lender's cost of doing business.
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Mortgage insurance premium
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The FHA insurance that the borrower is charged with a percentage of the loan as a premium
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Open-end loan
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A mortgage loan that is expandable by increments up to a maximum dollar amount, the full loan being secured by the same original mortgage.
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Package loan
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A real estate loan used to finance the purchase or both real property and personal property
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Primary mortgage market
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A note secured by a mortgage or deed of trust given by a buyer as borrower to a seller as lender as part of the purchase price of the real estate.
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Private mortgage market
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Insurance provided by private carrier that protects a lender against a loss in the event of a foreclosure
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Purchase money mortgage
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A note secured by a mortgage or deed of trust given to the buyer to a seller as part of purchase price
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Real estate settlement procedures
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The federal law that required certain disclosures to consumers about mortgage loan settlements.
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Regulation Z
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Truth in lending act requiring credit institutions to inform borrowers of the true cost of obtaining credit
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Sale and leaseback
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A transaction in which an owner sells his or her improved property and as part of the same transaction signs a long term lease to remain in possession of the premises.
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Straight term loan
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A loan in which only interest is paid during the term of the loan with the entire principal amount due with the final interest payment
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Trigger terms
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Specific credit terms such as down payment and monthly ect
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Truth in lending act
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Federal government regulates the lending practices of mortgage of finance charge or term of loan
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Wraparound loan
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Refinancing. an additional mortgage in which another lender refinances a borrower by lending an amount over the existing first mortgage amount without disturbing the existence of the first mortgage.
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Constructive eviction:
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actions of a landlord that so materially disturb or impair a tenant's enjoyment of the leased premises that the tenant is effectively forced to move out and terminate lease without further liability.
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Estate at sufferance
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Lease has expired and bitch won't leave
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Estate at will
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gives lessee the right to possession until the estate is terminated by either party.
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Estate for years
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interest for exact period of time
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Estate from period to period
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month to month lease ect
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Gross lease
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landlord pays all property charges
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Ground lease
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Tenant pays all property charges
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Holdover tenancy
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lease expires but landlord still takes rent so therefore excepting continuation of lease
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Net lease
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Pays rent plus all taxes, insurance ect
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Percentage lease
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Rental is based on the tenant's gross sale's at the premises
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Revisionary right
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The return of the rights of possession the the lessor
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Budget comparison statement
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compares the actual results with the original budget, ofter giving either percentages or a numerical variance of actual versus projected income and expenses
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Multiperil policies
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Insurance policies that offer protection from a range of potential perils, such as those of a fire, hazard, public liability and casualty.
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Operatin budget
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a guide of the property's financial performance in the present and future. It gives the owner a senesce of expected profit.
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Surety bonds:
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bond by insurance to be responsible for certain possible defaults, debts or obligations contracted by an insured party.
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Anticipation
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The appraisal principal that holds that value can increase or decrease based on the expectation of some future benefit or detriment produced by property
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assemblage
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The combining of two or more adjoining lots into one larger tract to increase total value
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Competitive market analysis:
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A comparison of recently sold houses
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Conformity
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the more similar properties in an area are the longer they will hold value
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Contribution
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What a property gives to the value of a whole or detracts
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Cost approach
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estimating the reproduction or replacement cost
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External obsolescence
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Incurable depreciation caused by factors not on the subject property, such as environmental, social, or economic factors,
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Function obsolescence
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A loss of value to an improvement to real estate arising from function problems, often caused by age or poor design.
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Law diminishing returns
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when at the point where additional improvements do not increase income or value
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law increasing returns
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as long as money being spent on improvements produces an increases income or value
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substitution
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the maximum value of a property tends to be set by the cost of purchasing an equally desirable property.
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Uniform standards of professional appraisal
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details information required of an appraisal of residential property.
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buffer zone
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a strip of land usually used as a park or designated for a similar use separating land dedicated to one use from land dedicated to another use
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building code
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an ordinance that specifies minimum standards of construction for buildings to protect public safety
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density zoning
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Allows maximum average number of houses per acre that may be built in an area
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interstate condemnation
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law that regulates the sale of certain real estate in interstate commerce
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variance
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permission to build something that does not follow zoning laws
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Blockbusting
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homeowners all being convinced to sell their homes because knowing someone is moving into the neighborhood
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fair housing 1988
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started to include having children as well as physical or mental disabilities
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redlining
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restricting loans to certain communities
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Brownfields
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abandoned commercial or industrial properties due to toxic waste
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comprehensive environmental response
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A establishes a process for identifying parties responsible for creating hazardous waste sits
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encapsulation
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a method of controlling environmental contamination by sealing off
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Environemental impact
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a statement that details the impact a federally funded project will have on the environment
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Environmental site assessment
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An evaluation to show that due care was exercised in the determination of environmental impairments
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polychlorinated biphenyls
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used as an insulating material in dielectric oil.
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Mortgage disclosure improvements acts
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3-7-3 three business days to provide a truth in lending statement, and good faith estimate, 7 days before signing a loan after buyer receives TIL, 3 business days for closing if APR has changed more than 0.125 percent
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