Term
| Graduated Payment Mortgage |
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Definition
| lower payments during initial period and higher payments later.....total amount paid will exceed a level mortgage.....negative am in the beginning |
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Term
| What are investment devices which allow the lender to share in appreciation? |
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Definition
- outright purchase
- purchase of part interest
- short term loans
- contingent interest loans
- indexed interest
- SAMS
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Term
| What may be troublesome for a lender participating in a SAM? |
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Definition
| Junior lien claimants may say that the partial equity position taken removes their priority |
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Term
| What purposes does an APPLICATION SERVE? |
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Definition
- Info to decide on loan
- Sets terms
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Term
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Definition
| letter from lender accepting terms....usually a K |
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Term
| Terms to make a mortgage complete.... |
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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
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Term
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Definition
| federal regulation which requires the lender to notify the applicant of the action taken on the application and, if refused why |
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Term
| How can a lender protect himself from rising interest rates during the commitment period? |
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Definition
- do not set a date until close to closing
- allow a lock-in-rate by payment of a fee
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Term
| Required disclosures in the fair faith in lending act... |
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Definition
- APR
- number, amount, and due dates of payments
- balloon payments
- refi
- late payment charge
- security interest
- prepayment penalty
- escrow
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Term
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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 |
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Term
| Does a mortgage have to describe and identify the debt and it is intended to secure? |
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Definition
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Term
The mortgage must state the maturity date.
T/F |
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Definition
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Term
The mortgage must state the interest rate.
T/F |
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Definition
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Term
| If foreclosed upon, the building does not have to be an operating unit. |
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Definition
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Term
| Major difference between Title Theory and Lien Theory |
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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 |
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Term
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Definition
| in default, the entire principal is immediately due |
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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 |
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Definition
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Term
The late charge can be imposed multiple times after the payment is late.
T/F |
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Definition
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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 |
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Definition
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Term
| On final payment, the landowner should insist on receiving... |
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Definition
- receipt of payment
- release in recordable form satisfying the mortgage
- canceled mortgage and note
- all evidence of title
- endorsement from hazard insurance company
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Term
| Two aspects of Equity of Redemption |
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Definition
- Mortgagor can redeem the property after default
- If the winning bid is more than the debt, the mortgagor receives the remainder
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Term
In Florida, all foreclosures must be judicially supervised.
T/F |
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Definition
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Term
| Deeds of Trust... explanation |
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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 |
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Term
| What does it mean if the loan is negotiable? |
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Definition
| Better chance of collecting |
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Term
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Definition
- Principal
- Interest
- Property Tax
- Insurance
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