Mortgage And Note

Question 1

Acceleration Clause

Answer 1

Allows the lender to demand immediate payment of entire loan if the borrower defaults

Question 2

Deficiency judgement

Answer 2

A judgement against a borrower if the foreclosure sale does not bring enough to pay the balance owed

Question 3

First mortgage

Answer 3

The mortgage loan with highest priority for repayment in the event of foreclosure

Question 4

Foreclosure

Answer 4

The procedure by which a person’s property can be taken and sold to satisfy an unpaid debt

Question 5

Junior mortgage

Answer 5

Any mortgage on a property that is subordinate to the first mortgage in priority

Question 6

Mortgage

Answer 6

A document that makes property security for the repayment of a debt

Question 7

Mortgagee

Answer 7

The party receiving a mortgage; the lender

Question 8

Mortgagor

Answer 8

The party giving a mortgage; the borrower

Question 9

Power Of Sale

Answer 9

Allows a mortgagee to conduct a foreclosure sale without first going to court

Question 10

Promissory note

Answer 10

A written promise to repay a debt

Question 11

Subordination

Answer 11

Voluntary acceptance of a lower mortgage priority that one would otherwise be entitled to