(12) Residential Mortgages

Question 1

The instrument that contains the amount of the loan, interest rate, payment provisions, and other terms of the loan is the

Answer 1

Promissory note

Question 2

The clause in a mortgage that protects the borrower’s interest and requires the lender to acknowledge performance by the borrower is the ____ clause

Answer 2

Defeasance

Question 3

If a borrower was in default, and the lender wished to call the entire balance of the loan due and payable, the mortgage would have to contain a ____ clause

Answer 3

Acceleration

Question 4

Which term refers to the right of a mortgagor in default to pay all money owed and prevent the sale of the property at foreclose

Answer 4

Equity of redemption

Question 5

When a borrower is consistently late on their mortgage payments, and the bank raises the interest. They have the right to do so under the ______ clause

Answer 5

Escalation

Question 6

After all liens have been paid following a foreclosure sale, to whom do any remaining funds belong

Answer 6

The mortgagor