Financing Flashcards
1
Q
Important terms
A
Lender (bank): mortgagee
Borrower: mortgagor
2
Q
What is a mortgage?
A
Security interest that authorizes lender to sell the mortgaged land (foreclose) to satisfy a debt if the borrower defaults.
3
Q
Foreclosure Sale
A
When property is sold b/c mortgagor’s failure to keep up with mortgage payments
*Mortgagee has fiduciary duty to act in “good faith” and have “due diligence” to sell property at proper price.
But if foreclosure sale gives less than debt owed, mortgagee can get deficiency judgment and receive rest of $
Other options: short sale, refinance, rework loan/terms, sell house and use $ to pay, deed in lieu of foreclosure, sell to someone else subject to mortgage
