Chapter 13 - Management of Individual Loans Flashcards
1
Q
3 financial obligations in addition to repayment of loan amount
A
payment of property taxes, insurance, maintenance
2
Q
acceleration clause
A
condition of interest and outstanding principal due in case of default
3
Q
interest adjustment period
A
period of time between the date the funds are advanced and the beginning of the first payment period
4
Q
2 options to recognize lessened indebtedness
A
remaining periodic payments reduced and amortization shortened
5
Q
interest rate differential
A
difference between contract rate of interest and current rate of interest over the remaining term
6
Q
book value of mortgage
A
amount of principal outstanding at a particular time
7
Q
market value of mortgage
A
estimate of amount might be received if mortgage was sold under current conditions
