Chapter 7 Vocab

Question 1

Acceleration

Answer 1

when the entire loan balance is due immediately. This is usually because of default or sale of the secured property.

Question 2

Alienation clause

Answer 2

limit the debtors rights to transfer the property without the creditors permision

Question 3

Beneficiary

Answer 3

The person entitled to a payment on a loan secured by a deed of trust

Question 4

Deed of Reconveyance

Answer 4

once the loan is paid of the title to the property is given to the borrower

Question 5

Deed of trust

Answer 5

instrument that makes real propertyy the security for a loan. unlike a mortgage it may be foreclosed on non nonjudicially.

Question 6

Deficiency judgment

Answer 6

court order telling to debtor to pay the difference between the amount of debt and the proceeds raised by foreclosure and sale of property

Question 7

Due on sale clause

Answer 7

AKA Alienation clause

Means the lender can accelerate the loan if the property is sold.

Question 8

Grantor / Trustor

Answer 8

A person who transfers real property

Question 9

judicial foreclosure

Answer 9

a court supervised foreclosure

Question 10

Land Contract

Answer 10

-seller contains legal title until the borrower pays off the entire contract.

Question 11

lien theory states

Answer 11

borrower take out a trust on the property and holds title. the deed of trust create a lean against the property in favor of the lender

Question 12

Maker

Answer 12

a person who signs a promissory note

Question 13

Mortgage

Answer 13

• the property is pledge as a security for a debt, creating a lien on the property
• must be foreclosed on judicially

Question 14

Mortgagee

Answer 14

the one who receives the mortgage payment

-the lender

Question 15

Mortgagor

Answer 15

the person who pays the mortgage

-the borrower

Question 16

Negotiable Instruments

Answer 16

promissory notes that are freely transferable

Question 17

notice of sale

Answer 17

a record stating the

• time
• place
• property description
• type of sale

Question 18

payee

Answer 18

the party who receives the mortgage

Question 19

promissory note

Answer 19

written evidence of debt

Question 20

security instrument

Answer 20

mortgages and trust deeds

-pledge assets as securities for debt

Question 21

sheriffs sale

Answer 21

• Public auction
• At court house door
• Anyone can bid

Question 22

subordination clase

Answer 22

instrument in which it is contained will become junior to other veins placed on the property later on

Question 23

title theory state

Answer 23

-borrower does not hold title during the loan term.

Question 24

trust deed

Answer 24

security device used to finance real estate

Question 25

trustee

Answer 25

- person or entity that hold property in trust for another | - fiduciary relationship

Question 26

Vendee

Answer 26

the purchaser or borrower under a real estate sale

Question 27

Vendor

Answer 27

the seller or lender under a real estate contract