Mortgages

Question 1

Mortgages

Answer 1

conveyance of an interest in real property as security for performance of an obligation

Question 2

lien theory

Answer 2

mortgage acts as a lien only

Question 3

title theory

Answer 3

mortgage owner is the owner

Question 4

intermediate theory

Answer 4

lender may take possession after borrower defaults before the foreclosure is complete

Question 5

Equity of Redemption

Answer 5

right of borrower to pay off mortgage after missing the payment

Question 6

Mortgage Essential Elements

Answer 6

1. amount
2. interest rate
3. term
4. amortization

Question 7

priority of mortgage

Answer 7

mortgage used to pay to acquire the property is always the 1st mortgage

Question 8

Due on Sale Clause

Answer 8

lender may demand repayment of obligation if property is disposed

Question 9

Deed in lieu of foreclosure

Answer 9

borrower just hands the deed over then walks away

Question 10

mechanic lien

Answer 10

any tradesman that works physically on personal property and isn’t paid may be able to place alien on the property
** in Texas there is a statutory and constitutional mechanic lien

Question 11

mortgage unconscionability

Answer 11

1. ARM wit artificial low interest rate
2. borrowers debt is +50% debt to income
3. intro rate is 3% below indexed rate
4. LTV is 100% or greater

Question 12

Judicial Foreclosure

Answer 12

requires a lawsuit and the judgement is the home

Question 13

Non-Judicial Foreclosure

Answer 13

ways to grab the home without state action

Question 14

Foreclosure duty

Answer 14

sell at fair price

Question 15

deficiency Judgement

Answer 15

limits judgement to the difference between FMV- unpaid loan balance