Section 4 Morgages, Deeds Of Trust And Foreclosure Flashcards
Entire loan balance due in case of a default
Acceleration clause
Also called due on sale clause
Alienation
A charge for early repayment
Prepayment penalty
Increase interest rate in event of default
Escalator cause
Allows 1st loan to keep its priority in refinancing
Subordination clause
Borrower must have property insurance
Covenant clause
Land does not ___
Depreciate
Similar to an appraisal but can’t call it that, should include recent sales, current listings and expired listings
CMA. Competitive market analysis
DUST
Demand. Utility. Scarcity. Transferability
What are fees based on
Time and effort not appraised value
Price actually paid in a transaction
Market price
“Fair market price” the most profitable price
Market value
Pay no more than the cost to acquire equally desirable property
Substitution
Value maximasied when similar properties are grouped
Conformity
Combining smaller lots into larger lot
Assemblage
The increase in value resulting from assemblage
Plottage
Value determine by expectations of the future benefits
Anticipation
Value determined by what people will pay- not cost
Contribution
Better homes decrease by association with modest homes
Regression
Modest homes increase by association with better homes
Progression
Growth. Equilibrium. Decline
Stages of a neighborhood
Neighborhoods change over time
Change
Success breads imitation
Competition
Value increase not through efforts of owner
Unearned increment
