State Exam Ch 13

Front 1

Chapter 13

Acceleration clause

Back 1

If a borrower defaults, the lender, has the right, to accelerate, the entire debt. This is, the first step, in a foreclosure.

Front 2

Alienation clause (resale clause)

Back 2

On the sale of property, the lender, has the choice, to declare the entire debt, immediately, permitting the buyer, to assume the loan.

Front 3

Bond

Back 3

Personal promise, to repay money, similar to a note.

Front 4

Default

Back 4

Failure, to live up to, any part of, a mortgage agreement.

Front 5

Defeasance clause

Back 5

Ensures, that when, a debt is repaid, the mortgagee, has no future claim, on the property.

Defeasance - action or process, of rendering something, null and void.

Front 6

Foreclosure

Back 6

When the borrower, defaults, in making payments, or fulfilling, any of the obligations, set forth, in the mortgage.

Front 7

Estoppel certificate

Back 7

Borrowers, statement, verifying The amount, that remains, to be repaid, and, the interest rate.

Front 8

Deficiency judgment

Back 8

Court order, the borrower, pay money lost, by the lender, after a foreclosure.

Front 9

Hypothecation

Back 9

Pledging of property, a security, for payment of a loan, without surrendering, possession of the property.

Front 10

Mortgage

Back 10

A conditional transfer or pledge, of real estate as security, for the payment of a debt. Also, the document creating a mortgage lien.

Front 11

Mortgagee

Back 11

Lender

Front 12

Mortgagor

Back 12

Borrower

Front 13

Note

Back 13

Personal promise to repay a loan.

Front 14

Reduction certificate

Back 14

Lender statement, of the balance remaining, on a debt.

Front 15

R. E. O. (real estate owned)

Back 15

Property acquired by lenders.

Front 16

Satisfaction of mortgage

Back 16

Lender's statement, that a debt, has been, paid in full.

Front 17

Sheriff's Deed

Back 17

document given, to a purchaser, of, a, foreclosed property.

Front 18

Sheriff's sale

Back 18

Public, auction, of foreclosed property.

Front 19

Short sale

Back 19

Lender agrees, to accept, whatever the house, sells for, on the open market, and then remove, the mortgage lien, so that the title, could be transferred.

Front 20

Subordination agreement

Back 20

Lien holders, agreement, to give up, Priority.

Front 21

Usury

Back 21

Charging higher interest, than is allowed, by law.

Front 22

Gloria, allows Ron, to take over, the mortgage on her property. She receives, the most protection, if, Ron?

A. Takes property subject to the existing loan.

B. Assumes The existing loan.

C. Acknowledge the present loan.

D. Subordinates cologne

Back 22

Answer.

B. Assumes The existing loan.

Front 23

Duties of the mortgagor:

Back 23

1. Maintain the property, in good condition, at all times.

2. Maintain adequate, insurance on the property.

3. Obtained the lenders, permission, before making, major alterations, to the property.

4. Pay the debt, according to, terms of the note.

5. Pay all real estate taxes.

Front 24

In a friendly foreclosure, the Lender agrees to?

Back 24

Accept, the deed in lieu, of foreclosure

Front 25

The bond accompanying mortgage is signed by the?

Back 25

Mortgagor - buyer

Front 26

IRS tax income, are not really received, if the mortgage, interest rate is?

Back 26

Below the acceptable rate.

Front 27

Mortgagor

Back 27

Owner

Front 28

A mortgage, maybe recorded, to?

Back 28

Establish the priority, of the lender's lien.

Front 29

If a borrower, decides to, accelerate their mortgage payments, this process, is called a?

Back 29

Prepayment

Front 30

deed in lieu

Back 30

Instrument in which a mortgagor, conveys all interest in a real property, to the mortgagee to satisfy a loan, that is in default and avoid foreclosure proceedings. The deed in lieu of foreclosure offers several advantages to both the borrower and the lender

Chapter 13