acceleration clause - correct answer clause that specifies that is the borrower fails to keep the covenants of the mortgage or trust deed, the entire loan
... [Show More] balance is due and payable upon demand
alienation clause/due-on-sale clause - correct answer clause that provides that upon alienation of the property by the mortgagor, the mortgagee may demand the balance of the debt be paid first
defeasance clause - correct answer clause that provides for the "defeat" or cancellation of the mortgage or trust deed when the borrower (mortgagor) has repaid the entire debt
prepayment clause - correct answer clause that may require that the mortgagor pay a penalty if the loan is paid off prior to the original maturity date
subordination clause - correct answer clause that is usually found in a junior clause; provides that if an existing first mortgage is paid off or negotiated the junior mortgage will remain subordinate and will not become a first mortgage
power-of-sale clause - correct answer clause that gives a trustee in states that use deeds of trust the right to sell the property in the event of default
exculpatory clause - correct answer clause that may be included in a mortgage or deed of trust, which states that the lender waives his right to a deficiency judgment
escalator clause - correct answer clause that provides for loan payments to be adjusted either up or down
partial release clause - correct answer clause that is used by developers to provide for the release of lots as the principal amount of the loan is paid back
assumption of mortgage - correct answer When a buyer assumes personal liability for full repayment of the debt, there is a(n) ______
subject to the mortgage - correct answer When a buyer purchases a home with an existing mortgage or deed of trust he may buy the property ______
statutory redemption laws - correct answer give the foreclosed borrower from one month to one year or more to pay his judgment in full and redeem his title
bare legal title - correct answer title limited to only those rights that are necessary to carry out the terms of the trust
deed in lieu of foreclosure - correct answer When a delinquent borrower voluntarily deeds the encumbered property to the lender it is known as ______
Releases the borrower from personal liability - correct answer By including an exculpatory clause in a mortgage contract, the lender...?
A. Waives her right to escalate the interest rate
B. Releases the borrower from personal liability
C. Agrees to permit an assumption to a qualified buyer
D. Grants the borrower immunity from foreclosure
The trustee - correct answer In a home loan using a trust deed, who hold naked legal title to the property?
subordination clause - correct answer When a clause is included in a mortgage, requiring it to assume a lower lien priority position, it is called a(n) ______ clause
True - correct answer A borrower has the obligation to keep the mortgaged property in good repair for the benefit of the mortgagee. T/F?
trustee - correct answer Who holds security in a deed of trust?
The lender may be entitled to a $5,000 judgment against the original borrower - correct answer If an individual defaults on a $100,000 mortgage and only $95,000 is received by the lender as a result of a court-ordered sale (foreclosure), which of the following is true?
A. The lender must file a $5,000 judgment against the person who purchased the property
B. The lender may be entitled to a $5,000 judgment against the original borrower
C. The lender cannot recover the $5,000
D. None of the above
Deed of trust and promissory note - correct answer When a buyer obtains a loan for the purchase of property, the lender will require what? (2)
Buyer and seller - correct answer A buyer assumes a seller's loan. The buyer defaults and the lender forecloses. Who is responsible for the balance owed on the loan?
Mortgage and promissory note - correct answer When a buyer obtains a loan for the purchase of property, the lender will require ______(2)
Satisfaction - correct answer A mortgage is released by ______
trustor; beneficiary - correct answer In a trust deed loan, the ______ makes the monthly payment to the ______.
defeasance - correct answer the clause in a mortgage that terminates the lender's interest in real property when the mortgage is paid in full
All of the other owners, jointly and severally - correct answer Several people buy a piece of property jointly. If one of the owners does not pay his portion of the note, who is responsible to the lender for the payment? [Show Less]