trust deeds and mortgages Flashcards
(24 cards)
What is a mortgage (NY)?
A lien instrument pledging real estate as loan security.
What is a trust deed (Deed of Trust)?
Title theory security instrument (not used in NY — common in other states).
What is lien theory (NY)?
Borrower retains title; lender has lien (used in NY).
What is title theory?
Lender holds legal title until loan repaid (used in some states with deeds of trust).
Who is mortgagor?
Borrower (gives mortgage).
Who is mortgagee?
Lender (receives mortgage).
Who is trustor?
Borrower in deed of trust.
Who is trustee?
Neutral third party holding title in deed of trust.
Who is beneficiary?
Lender in deed of trust.
What is judicial foreclosure?
Court-ordered foreclosure process (NY uses this).
What is non-judicial foreclosure?
Foreclosure without court involvement (via power of sale — not NY).
What is deficiency judgment?
Court ruling holding borrower liable for unpaid loan balance after foreclosure sale.
What is redemption period?
Time after foreclosure sale to reclaim property (NY = no statutory redemption).
What is equitable right of redemption?
Borrower’s right to pay off default and stop foreclosure before sale.
What is foreclosure auction?
Public sale of foreclosed property.
What is reinstatement?
Borrower pays missed payments to restore loan in good standing.
What is short sale?
Lender agrees to accept sale proceeds less than owed loan balance.
What is satisfaction of mortgage?
Document showing mortgage is paid off and lien is released.
What is reconveyance deed?
Used to release deed of trust lien (title theory states).
What is loan default?
Failure to meet loan obligations.
What is deed in lieu of foreclosure?
Borrower voluntarily transfers property to lender to avoid foreclosure.
What is mortgage assumption?
Buyer takes over seller’s loan.
What is subject to mortgage?
Buyer takes title but seller remains liable for loan.
What is strict foreclosure?
Lender takes title without sale (rare; not NY standard).
