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Definition
| conveyance or transfer of real property given to secure a the payment of a debt |
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Term
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Term
| Equitable Right of Redemption |
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Definition
right of the mortgagor to pay the debt even after default to recover his property
- Can sell rights
- could be disposed of at will
- right could be passed to heirs
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Term
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Definition
| a suit to bar or terminate the equitable right of redemption |
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Definition
| justice is served by offering the land for sale at a public auction. If the property is sold for more than the mortgage debt, the mortgagee would be paid in full and the surplus proceeds of the sale would be paid to the mortgagor. |
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| What acts have accomplished federalization of mortgage law? |
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Definition
- Real Estate Settlement Procedures Act
- Equal Credit Opportunity Act
- HUD
- FHA
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Term
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Definition
Federal National Mortgage Association
FNMA
1938 |
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Definition
Government National Mortgage Association
GNMA
1968
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Federal Home Loan Mortgage Corporation
FHLMC |
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Definition
| older view that a mortgage gives the mortgagee some sort of legal title to the land |
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Definition
| mortgagee only has lien to secure its debt |
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Definition
Borrower conveys the land to a third party, a trustee, in trust for the benefit of the holder of the notes that represent the mortgage debt
Advantage: can be foreclosed by trustee's sale under the power-of-sale clause without any court proceedings |
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Term
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Definition
| parties show their intention that real estate be held as a security for the payment of a debt....must be foreclosed in a court of equity |
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Term
| Deeds absolute given as a security |
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Definition
| this deed looks absolute on its face, but recharacterize and treat it as a mortgage |
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Term
| What is considered when the courts determine whether the transaction was a transfer of ownership or a security to a lender |
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Definition
- Adequacy of Consideration: land should sell for its full value
- Prior Negotiations Between Parties
- Subsequent Conduct of the Parties
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Term
| Vendors lien reserved by deed |
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Definition
| in taking back a mortgage from the buyer, the seller will expressly reserve in the deed to the buyer a lien on the land t osecure paymenr of the balance of the purchase price |
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Term
| Risks associated with ARMS |
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Definition
- the inability of the borrower to handle payment increases, where an increase in the market interest rate compels an increase in the size of the monthly payment
- the erosion of the equity due to negative amortization
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Term
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Definition
| interest rate is set for a period at which time the loan matures or is die and payable in full...short term, but still amortized over 30 yrs |
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Term
| What does negative amortization create? |
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Definition
- the loan to value ratio may increase, making the loan riskier from the lenders standpoint
- the increased principal may not have the same priority over intervening line claimants as the original principal
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