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11 Cards in this Set

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Deficiency Judgment
If amount realized at foreclosure sale is not sufficient to satisfy the debt owed to foreclosing mortgagee, it's possible for deficiency judgment to be granted for the difference between sales price and amount owing.

pg.113
Contracts for Deed
(Land Sales Contracts)
Financing Agreements where seller retains legal title of security for borrower's promise to pay

pg.112
Equitable Title
Interest in property prior to receipt of legal title.

pg.112
Redemption
(in some states)

Borrowers have a statutory period during which to redeem the property by paying the foreclosure sales price plus interest and penalties.

pg.113
3 basic instruments used to finance real estate
Mortgage,
Trust Deed (Deed of Trust),
Land Contract (Contract for Deed)

pg.111
Hypothecated
Borrower retains possession, while lender holds security interest.

pg.111
Intermediate Theory
Title remains with the borrower, but it automatically transfers to lender in event the borrower defaults.

pg.111
Lien Theory
Borrower retains title and gives lender lien on property. The lien is perfected when the mortgage is recorded in the county where the real estate is located.

pg.111
a Note
It is a promise to pay a sum of money. Primary evidence of the debt. The security for the note is the financing instrument.

pg.111
Deed of Trust
(Trust Deed, Trust Indenture)
3-party instrument:

Where trustor (borrower) gives a note to beneficiary (lender) and,
as security for note, conveys title and/or a power of sale to trustee (3rd person).

pg.112
Title Theory
(Different mortgage theory depends on state)

Title Theory State - Borrower transfers title to lender. When mortgage paid, title reverts back to borrower.

pg.111