5.1 Flashcards
The two mortgagor documents are _____ and ______.
Mortgage and a promissory note
In a foreclosure process, the deed is transferred at the end of the ______.
Statutory redemption period
The document that states a mortgage lien is released after full payment of the loan is the ______.
Satisfaction of mortgage
_______ is the clause that allows a lender to foreclose without going to court.
Power of sale
The mortgage borrower is the _______.
Mortgagor
The mortgage lender is the _______.
Mortgagee
A mortgage becomes a lien after it is _______.
Recorded
The ______ is the period of time between default and foreclosure that allows the mortgagor to get caught up on payments and avoid foreclosure.
Equitable redemption period
The ______ is the period of time between default and foreclosure that allows the mortgagor to get caught up on payments and avoid foreclosure.
Equitable redemption period
The _____ is the period of time that allows the mortgagor to redeem the mortgage even after foreclosure sale by paying the entire balance of the loan.
Statutory Redemption Period
Minnesota, the statutory redemption period is _______ months.
6
When a loan is paid in full, the homeowner should obtain a document from the lender known as the _______.
Satisfaction of mortgage
The _______ is the public auction where the highest bidder gets a certificate that states he/she will receive title after the Statutory Redemption Period expires.
Sheriff’s sale
When property is financed with a mortgage loan, the owner-borrower gives the lender a _______ as collateral.
Mortgage
After the mortgage is recorded, it becomes a ______.
Lien
If the borrower stops making payments on the loan, the lender can ______ on the property.
Foreclose
With a mortgage loan, the ______ is promise to make timely payments according to a schedule.
Promissory note
The equitable redemption period is the time between default and foreclosure that allows the mortgagor to get caught up on payments and avoid _______.
Foreclosure
The statutory redemption period is the period that allows the mortgagor to redeem the mortgage even after foreclosure sale by paying the entire ______ of the loan.
Balance
It is known as a _______ when the mortgagor (homeowner) falls behind on the payments.
Default
A _____ is a contract detailing the terms of a promise by one party (the maker ) to pay a sum of money to the other party (the payee).
Promissory note
A/an _______ loan is a type of payment plan in which the payments are the same for each period (i.e.: monthly) for a specified number of months or years.
Amortized
With a/an ______ loan, part of each payment goes toward interest, and the rest goes toward principal reduction.
Amortized
When the borrower makes the last installment payment, and there is a remaining principal, the final large payment is called a ______.
Balloon payment
_____ is a loan with which regular payments are made, but the principal remains the same.
Interest-only
When you pay ______ you pay interest in a lump sum upfront to get a lower rate on your fixed rate morgage.
Points
Each point costs ______% of the mortgage amount.
1%
The ______ clause makes the entire balance of the loan due and payable even though it has not fully amortized if specified conditions exist.
Acceleration
