Flashcards in Chapter 15: Real Estate Financing Principles Deck (33):
Charging more interest than is legally allowed is called?
A promissory note...
Is the primary evidence of a debt
A land contract provides for the...
Conveyance of legal title at a future date.
The finance fee charged by the lender to make the loan is?
A loan origination fee
A man just purchased his first home with a fixed-rate loan. The interest he will pay over the life of the loan is?
The amount of a loan expressed as a percentage of the value of the real estate offered as collateral is the?
Loan to value ratio
If the amount realized at a sheriffs sale as part of a mortgage foreclosure is more than the amount of the indebtedness and expenses, then the excess belongs to...
If a borrower defaults and the court simply awards the ledger full legal title, what kind of foreclosure has taken place?
A homeowner has just made the final payment on her home mortgage to her lender. There will still be a lien on her property until the lender records an?
Satisfaction of mortgage
An existing mortgage loan can have its lien priority lowered through the use of a?
If a property sold as a mortgage foreclosure does not sell for an amount sufficient to satisfy the outstanding mortgage debt, the mortgagor may be responsible for?
A deficiency judgement
The clause in a deed of trust or mortgage that permits the lender to declare the entire unpaid balance immediately due and payable upon default is what clause?
When a mortgage loan has been paid in full, it is important for borrowers to be sure that?
Satisfaction of mortgage is recorded
A deed of trust differs from a mortgage in what ways?
Number of parties involved in the loan
Redemption rights allowed after foreclosure
Time period Permitted to cure a default
Person who assumes an existing mortgage loan is?
Personally responsible for paying the principal balance
Interest in the property held by the owner in excess of any liens against it is called?
The mortgagee foreclosed on a property after the borrower defaulted on the loan payments. At the foreclosure sale, however, the house sold for only $229,000. The unpaid balance of the loan at the time of the sale was $240,000. What must the lender so to recover the $11,000 the borrower still owes?
Seek a deficiency judgment
The right a mortgagor has to regain the property by paying the debt after foreclosure sale is called?
The clause in a mortgage instrument that would prevent the assumption of the mortgage buy a new purchaser is a?
Due on sale clause
The defeasance clause in a mortgage requires the mortgagee to execute?
Satisfaction of mortgage
Seller agrees to sell the house to the buyer for $200,000. The buyer was unable to qualify for a mortgage loan for this amount so the seller and the buyer enter into a contract for deed. The interested buyer has in the property under contract for deed is?
A friendly foreclosure enables a mortgagor to prevent the mortgagee from taking the property by statutory means. This can be accomplished by?
Deed in Lieu of foreclosure
Mortgage lenders one assurance that future real estate taxes will be paid. The most common way to do this is to require the borrower to?
Pay into an impound account
When real estate is sold under an installment land contract and the buyer takes possession of the property, the legal title?
Is kept by the seller until the purchase price is paid according to the contract
What is true about a land contract?
The buyers given possession
If a buyer of $185,000 home obtains $150,000 mortgage with 4 points, how much will the lender charge a closing?
If they yield on a 30 year loan is 10 1/4% and the mortgage lender charges 3 points, what is the interest rate on the mortgage note?
In absence of an agreement to the contrary, the mortgage having priority will be the one?
Was recorded first
The pledging of property as security for payment of the loan is called?
Purpose of the mortgage is to?
Provide security for the loan
What is not associated with mortgage or deed of trust foreclosure?
The clause in a mortgage that best describes the requirement of the mortgagee to execute a satisfaction of mortgage when the note has been fully paid is?