Term
| What is included in a promissory note |
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Definition
1) Names of note holder and borrower
2) Total amount to be paid
3) Interest Rate
4) How payment is made and amount of payment
5) If there are any charges for late payment
6) Date total indebtedness must be paid off
7) If there is a prepayment penalty
8) Statement that note is secured by deed of trust and the deed of trust contains additional rights for the note holder |
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Term
| What are the two types of promissory notes |
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Definition
| A no default rate note and a strict acceleration note |
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Term
| What parties are involved in a Deed of Trust |
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Definition
1) Borrower (Trustor)
2) Lender (Beneficiary of Trust)
3) Public Trustee (Conveyance of the legal title to a public official) |
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Term
| What are the usual elements of a Deed of Trust |
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Definition
1) Date
2) Parties
3) Consideration
4) Words of Conveyance
5) Description of the property
6) Conditions of the trust deed
7) Foreclosure (Method of sale in case of default)
8) Exceptions
9) Borrower's Signature
10) Acknowledgement
11) Recording |
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Term
| What is the function of a public trustee |
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Definition
| To perform all duties and exercise all the power conferred upon them by the deeds of trust |
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Term
| What is a Combined Notice in a foreclosure |
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Definition
| Lender supplies the public trustee with original note and a list of all parties who are of record in lien positions, including the grantor on the Deed of Trust and current occupant of property. The public trustee will mail notices of foreclosure to these parties of record 45–60 days prior to sale |
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Term
| What is the purpose of Rule 120 in a foreclosure |
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Definition
| The purpose of the hearing is to legally establish whether the lender has the right to foreclose on the property and have it sold at the public auction. The hearing is the homeowner’s chance to object to the foreclosure; to show cause why the lender is not correct in his reasons to foreclose. |
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Term
| How after NED is the foreclosure sale date |
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Definition
| Sale date must not be less than 110, nor more than 125 days after recording of the NED for residential property and not be less than 215, nor more than 230 days after recording of the NED for agricultural property |
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Term
| When are real property taxes due |
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Definition
Real property taxes in Colorado become due on January 1st following the year for which they are assessed and may be paid, without penalty, as follows:
1. One-half on or before the last day of February, and the remaining one-half on or before June 15; or
2. The entire tax is due on or before the last day of April. |
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Term
| What is the delinquent tax rate |
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Definition
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Term
| When does a tax sale take place |
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Definition
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Term
| What occurs at a tax sale |
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Definition
| An individual pays the taxes for three years and receives a treasurer's deed and then owns the property |
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Term
| When is the Mill Levy determined |
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Definition
| No later than 11/15 of any year |
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Term
| What is the timeframe for Laborers or mechanics filing a lien |
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Definition
| 10 days before filing or up to 2 months after completion |
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Term
| What is the timeframe for subcontractors or material men filing a lien for materials |
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Definition
| Up to 4 months after completion |
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Term
| What is the timeframe for principal contractors filing a lien |
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Definition
| Up to 4 months after completion |
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Term
| What type of lien takes precedence over all other liens |
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Definition
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Term
| What is the Doctrine of Prior Appropriation |
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Definition
the right to divert the un-appropriated waters of any natural stream (surface or underground) to beneficial use shall never be denied.
1.First to claim usage and continue to use.
2.Preference in use: Domestic use first, then agricultural
use, then industrial.
3.Condemnation may occur when a lower preferred use has a prior appropriation. |
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Term
| What is the U.C.C.C. The Uniform Consumer Credit Code |
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Definition
| if an individual makes more than 5 loans in any given year, the individual will be considered a creditor and must make the required disclosures to the borrower. This law also determines the maximum interest rates that can be charged. For seller financing (carry backs) the maximum interest rate is 21% for loans less than $3,000.00 and up to 45% for loans greater than $3,000.00. If the seller is a creditor, the maximum interest rate is 21%. First mortgages can be up to 45% for lenders, but all other are 21%. Broker commissions that are carried as a note follow the same rules as seller carry backs. |
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Term
| What are the Standards of Mortgage Servicing |
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Definition
1) Mortgage brokers to keep in an escrow account for borrower's funds until time of closing;
2) disclose all lender costs to both the buyer and the seller at time of loan application and requires a written statement of the conditions of a loan guarantee (lock); and
3) if a loan is sold (or servicing of loan changes) the debtor must be notified within 20 days of the changes. The new servicer/lender is liable for escrowed taxes and any costs incurred if taxes are not paid. |
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