Finance Flashcards
A period of redemption after foreclosure
• Louisiana only has equitable redemption which extends from the notice of foreclosure until the property is actually sold, except in the case of tax sales which exted 3-5 years
Statutory Redemption
A promise to repay a debt
Promissory note
Property that is pledged as security a debt.
Collateral
The lender holds a lien until the debt is paid
• In Louisiana, title is in the borrower’s name but the lender holds a lien
Lien Theory
The lender holds the title until the debt is paid .
Title Theory
An instrument that makes property security for the repayment of a debt.
Mortgage
The borrower
Mortgagor
The lender.
Mortgagee
Gives the lender the right to demand payment in full of the entire unpaid debt in the event of default, or non-payment
Acceleration Clause
A penalty for early payment of the loan
Prepayment Penalty
Cancels the note when the debt is paid.
Satisfaction of Judgement
Gives the lender the right to increase the rate of interest during the length of the mortgage
Escalation Clause
Promises, (usually within a mortgage or deed)
Covenant
Makes mortgage non-assumable; also known as “due on sale clause”
Alienation Clause
Lender gives permission for a subsequent loan to assume first mortgage rights
Subordination Clause
