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Florida Real Estate > Section 12 > Flashcards

Section 12 Flashcards

(71 cards)

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1
Q

When the lender holds the title to the property until the mortgage is paid.

A

title theory state

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2
Q

When the borrower is granted title to the property immediately upon purchase.

A

lien theory state

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3
Q

Florida is a ____ theory state

A

lien

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4
Q

a loan instrument that the borrower signs promising to repay a loan.

A

Promissory note

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5
Q

accompanies the mortgage and details the specific terms of the loan

A

Promissory note

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6
Q

a loan instrument that pledges the real estate property as collateral for a loan

A

mortgage

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7
Q

must be in writing and recorded with the clerk of the courts to be valid

A

Mortgage

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8
Q

a release of mortgage indicating that a property is free of an original lien

A

satisfaction of mortgage

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9
Q

the satisfaction of mortgage must be filed with the county office where the lien was officially registered within

A

60 days

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10
Q

the pledging of securities or other assets as collateral to secure a loan while not giving up possession of the property.

A

Hypothecation

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11
Q

Mortgages recorded after the first mortgage are

A

junior mortgages

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12
Q

A mortgage lien holder can give up priority over another lien holder by signing a

A

subordination agreement.

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13
Q

Who promises to pay property taxes, property insurance, and applicable homeowner association fees?

A

Mortgagors

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14
Q

allows for mortgage debt to be paid off ahead of the payment schedule without penalty.

A

prepayment clause

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15
Q

calls the entire balance of the mortgage due upon default of the borrower.

A

acceleration clause

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16
Q

Should the balance be called, the borrower would have __ days from date of notice to pay the loan
back in full.

A

30

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17
Q

means that the lender reserves the right to forgive the fact that the borrower defaulted.

A

right to reinstate

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18
Q

ensures that the lender will have the mortgage paid in full if the mortgagor sells the property to someone else.

A

due on sale clause

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19
Q

cancels the lien placed against the property once the mortgage is paid in full

A

defeasance clause

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20
Q

The percentage amount covered by the loan compared to the entire value of the home is known as
the

A

loan-to-value ratio

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21
Q

Current Market Value - Mortgage Debt =

A

Equity

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22
Q

Amount of the Loan ÷ Value =

A

Loan-to-value-ratio

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23
Q

the process to manage payments connected with a loan

A

Loan servicing

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24
Q

an account set up and held by the lender to collect money to pay property fees such as property taxes
and insurance.

A

Escrow (Impound) account

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25
These are the four components of a mortgage payment: .
principal, interest, taxes, and insurance (PITI)
26
The acronym representing these four parts of a mortgage is
PITI (principal, interest, taxes, and insurance)
27
an upfront fee charged by lenders.
discount point
28
the amount the lender is profiting
Yield
29
expressed as an annual percentage rate or APR which allows borrowers to compare loans
Yield
30
one-time add-on fees ranging from 0.5_2%
Loan origination fees
31
a fee charged by a lender for making credit available for a borrower
Take-Out Commitment or Commitment Fees
32
a fee charged by a lender to temporarily lower the interest rate charged to the buyer
buydown
33
A loan against a set of lots. As property is sold, a partial release is obtained for just the lot sold.
blanket loan
34
The legal instrument that transfers the mortgage and promissory note to the purchaser
Assignment of Mortgage
35
issued to verify amounts of any unpaid balance, interest rate, and date to which interest has been paid prior to the assignment
Estoppel Certificate
36
agreement that relieves the original borrower from the debt
novation
37
creates equitable title for the new owner
contract for deed
38
a non-judicial process where the buyer agrees to give up the property.
deed in lieu of foreclosure
39
allows for a borrower to pay off a debt in full to stop foreclosure.
Right of redemption in Florida
40
Should a foreclosure auction result in surplus funds after all liens have been paid, the remaining funds are to be paid to the
mortgagor
41
Should the foreclosure sale not cover all the liens, this may be requested to be placed against the borrower
deficiency judgment
42
Junior liens on the property that are left unpaid by the auction are
released
43
Upon the property being sold at auction, the clerk of the court files this passing new title to the purchaser at the foreclosure auction
certificate of title
44
the sale of property releasing the mortgage lien even though the sale doesn’t cover the debt.
short sale
45
Calls the entire balance of the loan becomes due if the borrower defaults on the loan
acceleration clause
46
makes the new buyer responsible for the remaining debt
assumption
47
can be charged by a lender to temporarily lower the interest rate charged to the buyer
buydown
48
contract for deed is a form of
seller financing
49
also known as a friendly foreclosure
deed in lieu of foreclosure
50
an upfront fee that the lender charges the borrower that increases the lender’s yield
discount points
51
Lender calls the mortgage due in full upon the sale of the property
due on sale clause
52
the amount the owner has invested in the property
equity
53
The right of a property owner to redeem his or her property from foreclosure (or tax sale) by paying off the full amount owed
equity of redemption
54
an account held by the lender into which a homeowner pays money for taxes and insurance every month so that the money is available when the bill is due
escrow
55
verifies the amount of the unpaid balance, interest rate, and date to which interest has been paid prior to the assignment
estoppel certificate
56
the pledging of securities or other assets as collateral to secure a loan while not giving up possession of the property
hypothecation
57
The extra you pay to borrow money
interest
58
makes it more | difficult for a bank to foreclose on the property because the bank does not hold the title
lien theory
59
Used to finance improvements to land such as roads and sewers
land development loans
60
Processing payments, sending statements, managing the escrow accounts, providing collection services on delinquent loans, ensuring that the insurance and property tax payments are made on the property, handling pay-offs and assumptions, etc
loan serving
61
The % covered by the loan compared to the entire value of the property
loan to value ratio
62
the instrument that pledges the real estate property as collateral for a loan
mortgage
63
the document signed by the borrower promising to repay a loan under agreed-upon terms.
note
64
allows each property to be released as collateral from the mortgage as each property is sold
partial release clause
65
Allows a fee to be charged if the loan is paid off early
prepayment penalty
66
the mortgagee is allowed to be appointed to collect the income produced from the property to make the mortgage payments.
receivership clause
67
Lender reserves the right to forgive the fact that the borrower defaulted and move forward with the loan either with late payments paid or renegotiated.
right to reinstate
68
a release of mortgage that proves that a property is paid for free and clear of the original lien
satisfaction of mortgage
69
The sale of property for less than the outstanding mortgage debt
short sale
70
defined by a change in lien priority order
subordination agreement
71
a fee charged by a lender for holding credit available for a borrower
take-out commitment

Florida Real Estate (20 decks)

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