Real Estate Feasibility Test 1 Ch. 2 Set 1

Front 1

created in a transaction whereby one party pledges real property to another party as security for an obligation owed to that party.

Back 1

mortgage

Front 2

is normally executed contemproaneously with the mortgage. creates the obligation to repay the loan in accordance with its term and is secured by the mortgage

Back 2

promissory note

Front 3

allows the mortgagee to accelerate the debt when the property, or some interest in the property, is transferred without written consent of the mortagee.

Back 3

due on sale clause

Front 4

a mortgage may be written that it will protect several successive loans under a general line of credit extended by the mortgagee to the mortgagor.

Back 4

future advances

Front 5

an illustration of a mortgage for future adcances sometimes called an -------------, takes the form of construction loans

Back 5

open end mortgage

Front 6

might be used in situations where the seller provides financing b taking back a mortage from the buyer, and the buyer also intends to obtain a mortgage froma bank or other financial institution, usually to develop or construct an improvement

Back 6

subordination clause

Front 7

an iitem of tangible personal property that has become affixed to or is intended to be used with real estate so as to be considered part of the property.

Back 7

fixture

Front 8

any mortgage given by a buyer to the seller to secure payment of all or part of the purchase price of a property is usually called a

Back 8

purchase money order

Front 9

states that property acquired subsequent to the execution of the mortgage that becomes part of the real estate is included in the security covered by the mortgage.

Back 9

after acquired property clause

Front 10

(also contract for deed) seller promises to convey title at such time as the purchaser completes the performance of the obligation called for in the contract.

Back 10

land contract

Front 11

can result from any breach of the mortgage contract

Back 11

mortgage default

Front 12

often used to describe the various activities undertaken to deal with a mortgagor who is in financial trouble.

Back 12

workout

Front 13

a mortgagor in financial difficulty may seek permission from the mortgagee to extend the mortgage terms for a period of time

Back 13

extension agreement

Front 14

might be done because the cost of foreclosure may exceed the expected benefit of pursing that course of action.

Back 14

voluntary conveyance

Front 15

a foreclosure action in which the borrower submits to the jurisdiction of the court, waives any right to assert defenses and claims and to appeal or collaterally attack any judgement, and otherwise agrees to cooperate with the lender in the litigation

Back 15

friendly foreclosure

Front 16

before filing the bankruptcy petition, borrowers agree with all their creditors to the terms on which they will turn their assets over to their creditors in exchange for a discharge of liabilities.

Back 16

prepackaged bankruptcy

Front 17

sue on the debt, obtain judgement and execute the judgement against the property

Back 17

judicial foreclosure

Front 18

the process of canceling or annulling a title conveyed by a foreclosure sale by paing the debt or fulfillinf the other conditions in the mortgage.

Back 18

redemption

Front 19

any deficit remaining after a foreclosure and sale of the property is known as a

Back 19

deficiency judgement