Unit 12 - 9 State - Residential Mortgages Flashcards
Unit 12
Promissory Note provides the following financial details:
- amount of debt
- interest rate
- repayment method
- term or period to repay
- borrower’s failure to pay as required
Unit 12
Lien Theory
Florida (and 24 others)
mortgagor (borrower) retains title
Unit 12
Loan-to-Value Ratio (LTV)
loan amount/sale price (or value)
Unit 12
Assignment of Mortgage
legal instrument that transfers the mortgage or promissory note to the purchaser
Unit 12
Hypothecation
pledging property as security for repayment of a loan
Unit 12
Subordination Agreement
when a mortgage that has been recorded earlier takes a lower lien priority to a mortgage recorded later
Unit 12
Within how many days does the satisfaction of mortgage have to be recorded and sent to the mortgagor?
60 days
Unit 12
Lien Theory vs Title Theory
Lien Theory = Florida = borrower retains title
Title Theory = title with lender until paid
Unit 12
Discount Points
Each point is paid up front as a percent of the loan.
Ex: 3 points on $200,000 loan
3% of 200,000 = $6,000 paid up front for lower interest rate for the life of the loan
increases the yield by about 1/8 of each percent
ex: 7% interest plus 3 points = 7+ 3/8 = 7.375%
Unit 12
blanket mortgage with partial release clause
several parcels under one loan. Developer sells off each lot, developer pays loan and it releases responsibilities for that part
Unit 12
Equity of redemption
home about to foreclose but pay the mortgagee principal and interest due plus any expenses
Unit 12
Receivership Clause
if property receives income, then might be collected to help pay mortgage payments
Unit 12
lis pendens
notice recorded in public records (constructive notice) of PENDING LEGAL ACTION (pre-foreclosure)
Unit 12
acceleration clause vs due-on-sale clause
acceleration = pay not as result of default due-on-sale = pay if you sell it... mortgage not assumable
