Shared Flashcard Set

Details

Real Estate Law Test 2
20-Real Estate Finance: Mortgages(b)
25
Real Estate & Planning
Undergraduate 4
10/08/2009

Additional Real Estate & Planning Flashcards

 


 

Cards

Term
Graduated Payment Mortgage
Definition
lower payments during initial period and higher payments later.....total amount paid will exceed a level mortgage.....negative am in the beginning
Term
What are investment devices which allow the lender to share in appreciation?
Definition

  • outright purchase
  • purchase of part interest
  • short term loans
  • contingent interest loans
  • indexed interest
  • SAMS

Term
What may be troublesome for a lender participating in a SAM?
Definition
Junior lien claimants may say that the partial equity position taken removes their priority  
Term
What purposes does an APPLICATION SERVE?
Definition
  1. Info to decide on loan
  2. Sets terms
Term
Commitment
Definition
letter from lender accepting terms....usually a K
Term
Terms to make a mortgage complete....
Definition

  • borrower signs in a specified time
  • borrower agrees to furnish evidence of title and survey
  • agree to sign chattel security docs and sign assignment of leases and rents

Term
What is Reg B
Definition
federal regulation which requires the lender to notify the applicant of the action taken on the application and, if refused why
Term
How can a lender protect himself from rising interest rates during the commitment period?
Definition

  • do not set a date until close to closing
  • allow a lock-in-rate by payment of a fee

Term
Required disclosures in the fair faith in lending act...
Definition

  • APR
  • number, amount, and due dates of payments
  • balloon payments
  • refi
  • late payment charge
  • security interest
  • prepayment penalty
  • escrow 

Term
Master Mortgage
Definition
the lenders usual form of mortgage with none of the blanks filled in, or as executed and recorded in connection with a prior transaction
Term
Does a mortgage have to describe and identify the debt and it is intended to secure?
Definition
Yes
Term

The mortgage must state the maturity date.

T/F

Definition
False
Term

The mortgage must state the interest rate.

T/F

Definition
False
Term
If foreclosed upon, the building does not have to be an operating unit.
Definition
False
Term
Major difference between Title Theory and Lien Theory
Definition

Title Theory: The mortgagee has the right to take possession of the property

Lien Theory: the mortgage merely creates the right to acquire the land through foreclosure 

Term
Acceleration Claue
Definition
in default, the entire principal is immediately due
Term

The acceleration clause also includes provisions in case the mortgagor does not live up to non monetary standards, like keeping the property in repair.

T/F

Definition
True
Term

The late charge can be imposed multiple times after the payment is late.

T/F

Definition
False
Term

In addition to late charges, the lender will be allowed to charge interest at a higher rate if the loan is in default.

T/F

Definition
True
Term
On final payment, the landowner should insist on receiving...
Definition

  • receipt of payment
  • release in recordable form satisfying the mortgage
  • canceled mortgage and note
  • all evidence of title
  • endorsement from hazard insurance company

Term
Two aspects of Equity of Redemption
Definition

  1. Mortgagor can redeem the property after default
  2. If the winning bid is more than the debt, the mortgagor receives the remainder

Term

In Florida, all foreclosures must be judicially supervised.

T/F

Definition
True
Term
Deeds of Trust... explanation 
Definition
at the closing the deed is given, and put into a trust the bank has created. The bank names a trustee, and once the loan is paid, the borrower receives the deed and the trust is extinguished 
Term
What does it mean if the loan is negotiable?
Definition
Better chance of collecting
Term
PITI
Definition

  • Principal
  • Interest
  • Property Tax
  • Insurance

Supporting users have an ad free experience!