Mortgages

Question 0

Mortgage

Answer 0

Equitable interest in property that secures the promise in the note

Question 1

Note

Answer 1

Promise or document that evidences the debt by contains the borrower’s promise to pay on stated terms and conditions; creates personal liability

Question 2

Amortization

Answer 2

Method by which the borrower repays the loan, it sets for the amount and due date for each loan payment

Question 3

Deed of trust

Answer 3

The borrower conveys title to the land to a person to hold in trust to secure payment of debt; if borrower defaults, trustee has power to sell

Question 4

Statutory redemption

Answer 4

State passed statute giving the mortgagor’s a statutory right to buy Bach the title from the purchaser at a judicial foreclosure sale

Question 5

Strict foreclosure

Answer 5

A proceeding in which a mortgagor’s was ordered to pay within a given period or forever be barred; forced sale without the sale of security property

Question 6

Deficiency judgment

Answer 6

Unsecured money judgment against borrower whose mortgage foreclosure same did not produce sufficient funds to pay the underlying promissory note, loan, in full

Question 7

Equitable of redemption

Answer 7

the mortgagor’s interest in property; mortgagor’s has a right to redeem by paying off mortgage and accrued interest before foreclosure but if they don’t redeem by acceleration then they have default

Question 7

Mortgage default timeline

Answer 7

1. default
2. Notice of default
3. Reinstatement
4. notice of acceleration
5. Acceleration
6. Equitable redemption
7. Foreclosure
8. Sale
9. Set aside for defects (procedural or price defects)
10. Statutory redemption
11. Eviction

Question 8

Real defenses that survive holder in due course

Answer 8

Infancy, duress, discharge in insolvency proceedings, any other discharge of which the holder had notice before taking the note, illegality of the transaction, fraud in the factum

Question 9

Fraud in the factum

Answer 9

Fraud that induced the obligor to sign the instrument with either knowledge nor reasonable opportunity to learn of its character or it’s essential

Question 10

Personal defenses

Answer 10

Lack of consideration, nonperformance of a condition precedent, no delivery, actual payment of the debt, fraud in the inducement

Question 11

Fraud in the inducement

Answer 11

Fraudulent promises made to persuade the maker to sign the note; Made misrepresentation about the terms of the deal

Question 12

Purchase money mortgage

Answer 12

A mortgage given to secure the purchase price of land

Question 13

Judicial decisions

Answer 13

Courts have set aside foreclosure sales for inadequacy of price where the price is so low as to shock the conscience of the court; they may scrutinize the sale to make certain that proper notice was given and other safeguards complied with; or the court may hold that a private foreclosure sale must use commercially reasonable methods for producing a fair price

Question 14

Transfer of mortgagor’s interest

Answer 14

Subject to mortgage or assumption of mortgage

Question 15

Alt-A loan

Answer 15

Loan made to a borrower who is close to being eligible for a prime loan but does not qualify

Question 16

Subprime loan

Answer 16

Loan made to borrowers who generally would not qualify for traditional loans offered at the generally prevailing rate of interest for conventional mortgages