Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
22 Cards in this Set
- Front
- Back
|
Docs in Real Estate Transaction
|
Earnest Money Contract Deed Real Estate Lien (Promissory) Note Deed of Trust |
|
|
Promissory Estoppel Court Case: Highpoint v. Vail |
Consistent acceptance of late payments stops Lender from accelerating without 1st giving notice
|
|
|
Yield Maintenance
|
Penalty upon prepayment to "yield" Lender same amount interest as if loan not prepaid
|
|
|
Types of Carve Outs
|
Misappropriations of rent money Environmental problems Misrepresentation Willful damage No insurance |
|
|
*Prepaid Interest Payable at Closing (or Initial Payment)*
|
You pay interest to the end of the month in which you actually Close (i.e. execute the Promissory Note), then you program in computer that you borrowed the money on the 1st of the next month (this why you should try to Close at the end of the month). This why you start loan pmts. on the next month |
|
|
*Defeasance*
|
Making a Deed/Contract null and void Substitution of collateral ex: if you have a loan and can't prepay but you have a Seller, you can move your collateral somewhere else & get lien off that property in order to sell it |
|
|
Borrower Principal |
Liable only for Carve-Outs He is NOT the Borrower, but needs to have sufficient control over Borrower |
|
|
Usury Clause- "Oops Clause"
|
If Bank takes too much interest, our bad, we will reimburse you
|
|
|
5 Parts of Deed of Trust
|
Property Description Warranty Clause- Borrower guar. he owns property Granting Clause- NOT a sale but a lmtd. right to RE-POSSESS Note & Debt Provision/Trust Clause- Lender lent Borrower money (no Deed of Trust w/o a debt) Power of Sale- Permits private NON-Judicial foreclosure (lenders like Tx for this) |
|
|
4 Reqmt's for Deed of Trust Foreclosure
|
Notice of Default & Right to Cure Notice of Sale- post on courthouse, file w/ clerk, mail copy to borrower & guarantor Date & Time of Sale- only on 1st Tues. of month & time with 3 hr. delay permitted Place of Sale- door of courthouse |
|
|
Right of Redemption
|
AFTER sale, former owner has NO right to buy back property or pay the lender to keep it
|
|
|
Short Sale
|
Sell for less than what is owed and then move the difference to some other collateral of borrower
|
|
|
Deficiency Judgment
|
If foreclosed property sold at less than debt, Lender may sue for remainder IF full recourse
|
|
|
Deed in Lieu of Foreclosure
|
Lender's ability to accept a deed-in-lieu of foreclosure, no need for foreclosure sale
|
|
|
PITIRTI
|
PrincipalInterestTaxesInsuranceRepairs (Reserves)Tenant Improvements
|
|
|
Assumptions |
Buyer Loan = Seller Loan |
|
|
Subject To |
Buyer Loan < Seller Loan |
|
|
Wraparound Mortgage |
Buyer Loan > Seller Loan |
|
|
Novation |
Lender releases orig. Buyer and agrees to look only to new Buyer |
|
|
Dragnet or Future Advance Clause |
1 Deed of Trust creates lien for all partial advances of money during construction |
|
|
Mother Hubbard Clause |
All property attached to property LATER in future, is covered by Deed of Trust & can be foreclosed |
|
|
Reinstatement, Modification, Renewal & Extension Agreements |
Borrower gets 2nd Chance Reinstate delinquent or accelerated loan Modify terms of existing loan Renew existing Deed of Trust liens Extend loan maturity date |
