Finance Flashcards
Trustor
The borrower under the deed of trust
Vendor
The seller under the contract of sale ( LAND contract)
Grace period duration
10-15 days
Legal Title
Title that is complete and perfect in regard to right of ownership / can be held by a trustee..
Reconveyance Deed
Trustee conveys back the property to the borrower (trustor) upon full payment in the full of debt secured by the trust deed.
Security agreement
A device to secure a loan on a personal property
Assignment of Rent
Agreement between property owner and the holder of the trust deed or lender. Holder receive the security the right to collect rent from tenant of the property in the event of the default by the borrower.
Subject to clause
- Buyer takes over the existing loan
- Assume no personal liability for the loan
Purchase money loan
A trust created as evidence of a debt at the time of the sale of the property.
Equity of redemption
Before a foreclosure, the right of the debtor, to reclaim the property that have been given up due to mortgage default .
APR
The relationship of the total finance charge to the total amount to be financed as required under the Truth in Lending Act.
APR is the annual cost of a loan to a borrower — including fees
rollover mortgage
A loan that allows the rewriting of a new loan at the termination of the prior loan.
TPO
Third party originator
person who takes application from borrowers
does NOT fund loans or underwrite
Intermediation
Transferring capital from those who invest funds to those who wish to borrow.
Regulation Z => Truth in lending ACT
FEDERAL Law => require borrower to be informed about the cost of the borrowing money.
Beneficiary
It is the lender under the deed of trust.
Alienation clause
A clause in the loan document that allows the lender to call the entire loan due upon the sale of the property. / A type of ACCELERATION CLAUSE
Equal Credit opportunity ACT
A federal Law that requires lenders to assure that credit available with fairness, impartiality, without discrimination
pledge
The transfer of property to a lender as a security for repayment of the debt.
Blanket loan
A loan that is secured by several properties
Margin
ARM/ a fixed percentage added to an index to determine the fully indexed of interest rate of an adjustable rate mortgage.
Holder in Due course
who hold the negotiable instrument in the ordinary course of the business before it is due . in food faith and for value. With NO knowledge it has been previously dishonored..with No notice of defects.
Service member civil relief ACT
A federal law designated to protect persons in military service from loss of property when their ability to make the payment has been affected by their entering military service.
Trustee’s DEED
A deed given to a buyer of real property at a trustee’s sale.
Vendee
A buyer under the contract of sale. ( Land Contract )
REINSTATE
Bring current and restore
MLO => Mortgage loan originator
A person who take residential mortgage loan application , or negotiate the terms of the residential mortgage loan for compensation.
Hard Money Loan
The evidence of the debt given in exchange for cash.
Deregulation
A process by financial institutions that have been restrained in their lending activities by law are allowed to compete freely.
Swing loan
Short term loan, / On the strength of the equity from the property the purchaser is now selling.
Usury
The act of charging the rate of interest in excess of that is permitted by law.
Financing Statement
Written notice filled with the county recorder by the creditor.
Establish the creditors interest in the personal property which is the security for the debt.
Hypothication
to give real property as a security for a debt without giving up possession
mill levy
is the “tax rate” that is applied to the assessed value of a property. One mill is one dollar per $1,000 dollars of assessed value.
“naked title” or “bare legal title”
used for the title held by the trustee. In this case, the trustee has control over the property, but the courts recognize that the rights to the property belong to the beneficiaries, who hold equitable title
How a Property Tax Equalization Factor Works in Real Estate
the percentage that the property is assessed at compared to 100% market value.
A point, line, Surface from which elevations are measured is known as
Datum
A section
one square mile
