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Florida Real Estate > Section 12 > Flashcards

Section 12 Flashcards

1
Q

When the lender holds the title to the property until the mortgage is paid.

A

title theory state

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2
Q

When the borrower is granted title to the property immediately upon purchase.

A

lien theory state

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3
Q

Florida is a ____ theory state

A

lien

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4
Q

a loan instrument that the borrower signs promising to repay a loan.

A

Promissory note

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5
Q

accompanies the mortgage and details the specific terms of the loan

A

Promissory note

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6
Q

a loan instrument that pledges the real estate property as collateral for a loan

A

mortgage

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7
Q

must be in writing and recorded with the clerk of the courts to be valid

A

Mortgage

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8
Q

a release of mortgage indicating that a property is free of an original lien

A

satisfaction of mortgage

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9
Q

the satisfaction of mortgage must be filed with the county office where the lien was officially registered within

A

60 days

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10
Q

the pledging of securities or other assets as collateral to secure a loan while not giving up possession of the property.

A

Hypothecation

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11
Q

Mortgages recorded after the first mortgage are

A

junior mortgages

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12
Q

A mortgage lien holder can give up priority over another lien holder by signing a

A

subordination agreement.

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13
Q

Who promises to pay property taxes, property insurance, and applicable homeowner association fees?

A

Mortgagors

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14
Q

allows for mortgage debt to be paid off ahead of the payment schedule without penalty.

A

prepayment clause

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15
Q

calls the entire balance of the mortgage due upon default of the borrower.

A

acceleration clause

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16
Q

Should the balance be called, the borrower would have __ days from date of notice to pay the loan
back in full.

A

30

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17
Q

means that the lender reserves the right to forgive the fact that the borrower defaulted.

A

right to reinstate

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18
Q

ensures that the lender will have the mortgage paid in full if the mortgagor sells the property to someone else.

A

due on sale clause

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19
Q

cancels the lien placed against the property once the mortgage is paid in full

A

defeasance clause

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20
Q

The percentage amount covered by the loan compared to the entire value of the home is known as
the

A

loan-to-value ratio

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21
Q

Current Market Value - Mortgage Debt =

A

Equity

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22
Q

Amount of the Loan ÷ Value =

A

Loan-to-value-ratio

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23
Q

the process to manage payments connected with a loan

A

Loan servicing

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24
Q

an account set up and held by the lender to collect money to pay property fees such as property taxes
and insurance.

A

Escrow (Impound) account

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25
Q

These are the four components of a mortgage payment: .

A

principal, interest, taxes, and insurance (PITI)

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26
Q

The acronym representing these four parts of a mortgage is

A

PITI (principal, interest, taxes, and insurance)

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27
Q

an upfront fee charged by lenders.

A

discount point

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28
Q

the amount the lender is profiting

A

Yield

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29
Q

expressed as an annual percentage rate or APR which allows borrowers to compare loans

A

Yield

30
Q

one-time add-on fees ranging from 0.5_2%

A

Loan origination fees

31
Q

a fee charged by a lender for making credit available for a borrower

A

Take-Out Commitment or Commitment Fees

32
Q

a fee charged by a lender to temporarily lower the interest rate charged to the buyer

A

buydown

33
Q

A loan against a set of lots. As property is sold, a partial release is obtained for just the lot sold.

A

blanket loan

34
Q

The legal instrument that transfers the mortgage and promissory note to the purchaser

A

Assignment of Mortgage

35
Q

issued to verify amounts of any unpaid balance, interest rate, and date to which interest has been paid prior to the assignment

A

Estoppel Certificate

36
Q

agreement that relieves the original borrower from the debt

A

novation

37
Q

creates equitable title for the new owner

A

contract for deed

38
Q

a non-judicial process where the buyer agrees to give up the property.

A

deed in lieu of foreclosure

39
Q

allows for a borrower to pay off a debt in full to stop foreclosure.

A

Right of redemption in Florida

40
Q

Should a foreclosure auction result in surplus funds after all liens have been paid, the remaining funds are to be paid to the

A

mortgagor

41
Q

Should the foreclosure sale not cover all the liens, this may be requested to be placed against the borrower

A

deficiency judgment

42
Q

Junior liens on the property that are left unpaid by the auction are

A

released

43
Q

Upon the property being sold at auction, the clerk of the court files this passing new title to the purchaser at the foreclosure auction

A

certificate of title

44
Q

the sale of property releasing the mortgage lien even though the sale doesn’t cover the debt.

A

short sale

45
Q

Calls the entire balance of the loan becomes due if the borrower defaults on the loan

A

acceleration clause

46
Q

makes the new buyer responsible for the remaining debt

A

assumption

47
Q

can be charged by a lender to temporarily lower the interest rate charged to the buyer

A

buydown

48
Q

contract for deed is a form of

A

seller financing

49
Q

also known as a friendly foreclosure

A

deed in lieu of foreclosure

50
Q

an upfront fee that the lender charges the borrower that increases the lender’s yield

A

discount points

51
Q

Lender calls the mortgage due in full upon the sale of the property

A

due on sale clause

52
Q

the amount the owner has invested in the property

A

equity

53
Q

The right of a property owner to redeem his or her property from foreclosure (or tax sale) by paying off the full amount owed

A

equity of redemption

54
Q

an account held by the lender into which a homeowner pays money for taxes and insurance every month so that the money is available when the bill is due

A

escrow

55
Q

verifies the amount of the unpaid balance, interest rate, and date to which interest has been paid prior to the assignment

A

estoppel certificate

56
Q

the pledging of securities or other assets as collateral to secure a loan while not giving up possession of the property

A

hypothecation

57
Q

The extra you pay to borrow money

A

interest

58
Q

makes it more

difficult for a bank to foreclose on the property because the bank does not hold the title

A

lien theory

59
Q

Used to finance improvements to land such as roads and sewers

A

land development loans

60
Q

Processing payments, sending statements, managing the escrow accounts, providing collection services on delinquent loans, ensuring that the insurance and property tax payments are made on the property, handling pay-offs and assumptions, etc

A

loan serving

61
Q

The % covered by the loan compared to the entire value of the property

A

loan to value ratio

62
Q

the instrument that pledges the real estate property as collateral for a loan

A

mortgage

63
Q

the document signed by the borrower promising to repay a loan under agreed-upon terms.

A

note

64
Q

allows each property to be released as collateral from the mortgage as each property is sold

A

partial release clause

65
Q

Allows a fee to be charged if the loan is paid off early

A

prepayment penalty

66
Q

the mortgagee is allowed to be appointed to collect the income produced from the property to make the mortgage payments.

A

receivership clause

67
Q

Lender reserves the right to forgive the fact that the borrower defaulted and move forward with the loan either with late payments paid or renegotiated.

A

right to reinstate

68
Q

a release of mortgage that proves that a property is paid for free and clear of the original lien

A

satisfaction of mortgage

69
Q

The sale of property for less than the outstanding mortgage debt

A

short sale

70
Q

defined by a change in lien priority order

A

subordination agreement

71
Q

a fee charged by a lender for holding credit available for a borrower

A

take-out commitment

Florida Real Estate (20 decks)

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