Chap 15 Notecards

Question 1

Is a written instrument that gives the creditor (mortgagee) an interest in, or lien on, the property being acquired by the debtor (mortgagor) as security for the debt’s payment

Answer 1

Mortgage

Question 2

Standard mortgage with a fixed interest rate and fixed payments for the life of the load

Answer 2

Fixed rate

Question 3

Rate of interest changes periodically as do the payments

Answer 3

Adjustable rate mortgages (ARM)

Question 4

Private mortgage insurance required the down payment is less than 20%
Mortgages recorded
Repayment penalties

Answer 4

Lender protections

Question 5

Allows a lender to legally repossess an auction off the property that is securing the loan

Answer 5

Foreclosure

Question 6

Sale of a property for less than the balance of the loan

Answer 6

Short sales

Question 7

Borrower is still liable for difference between auction price and loan amount

Answer 7

Deficiency judgements

Question 8

Borrower can pay full amount of debt and exercise his equitable right of redemption, but right ends when property sold at foreclosure

Answer 8

Equitable

Question 9

Borrower can purchase after foreclosure sale, usually for a year, but pays purchase price

Answer 9

Statutory