Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

AZ Real Estate Agent License 2020 > Voluntary Liens and Foreclosures 17 > Flashcards

Voluntary Liens and Foreclosures 17 Flashcards

1
Q

Failure to Comply with Any Terms of the Note or Mortgage

A

Default -

Failure to Comply with Any Terms of the Note or Mortgage

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

A Pledge of Real Property as Security Without Giving Possession of Property to Lender.

A

Hypothecation -

A Pledge of Real Property as Security Without Giving Possession of Property to Lender.

Note: Promissory Note (Chap 6) - Personal Promise to repay a debt. Serves as evidence of debt, but does not reference collateral.

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Secures Note with Collateral (Property), Document is called?

  1. Promissory Note - Promise to Repay Debt (Amount, Rate, Pattern of Pymts - No Collateral Referenced)
  2. M_____or - Borrower / M_____gee - Lender
  3. S______ Of Mo______ - Pay-Off

Remember OR Gives and EE receives

A

Mortgages - Secured Note With Collateral (Property)

  1. Promissory Note - Promise to Repay Debt (Amount, Rate, Pattern of Pymts - No Collateral Referenced)
  2. Mortgagor - Borrower / Mortgagee - Lender
  3. Satisfaction Of Mortgage - Pay-Off

Remember OR Gives and EE receives - Mortgagor gives money to Mortgagee.

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Mortgage Default Steps (Judicial Foreclosure)

  1. E___ of R______ - Borrower holds
  2. L__ P______ (Lawsuit) - Recorded
  3. C____ Ac___ - Takes Place
  4. S____’s S_____ - Highest Bidder Received S____’s C____ of Sale
  5. Stat____ Ri___ of Redem____ - For __ months begins
  6. If N_ R______ - S_____’s Deed Issued to Bidder
A

Mortgage Default Steps (Judicial Foreclosure)

  1. Equity of Redemption - Borrower holds
  2. Lis Pendens (Lawsuit) - recorded
  3. Court Action - takes place
  4. Sheriff’s Sale - Highest Bidder received Sheriff’s Certificate of Sale
  5. Statutory Right of Redemption - For 6 mos begins
  6. No Redemption - Sheriff’s Deed Issued to Bidder

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Promise to Repay Debt - with Amount, Rate, Pattern of Payments Noted - and (No Collateral Referenced) is called?

  1. Mortgage - Secures note with Collateral/Property
  2. Mortgagor - Borrower / Mortgagee - Lender
A

Promissory Note - Promise to Repay Debt - with Amount, Rate, Pattern of Payments Noted - and (No Collateral Referenced)

  1. Mortgage - Secures Note with Collateral/Property
  2. Mortgagor - Borrower / Mortgagee - Lender

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Payoff of Mortgage - Lender Delivers in 30 days to Borrower This document is called?

A

Defeasance (Payoff) or Satisfaction of Mortgage -

Lender Delivers in 30 days to Borrower as Proof of Payment in Full.

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Lawsuit Filed, and Recorded and the Debt is Accelerated. This Document States that Litigation is Pending Against the Property Owners. Used in Mortgage Process.

A

Lis Pendens -

Lawsuit Filed, and Recorded and the Debt is Accelerated. This Document States that Litigation is Pending Against the Property Owners. Used in Mortgage Process.

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

In Mortgage Defaults -

How Does Borrower Hold Title before the Sheriff’s Sale

A

In Mortgage Defaults -

Equity of Redemption - Borrower Holds this Title before the Sheriff’s Sale

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

In a Mortgage Default, When does Sheriff’s Sale Take Place?

A

Mortgage Default

Sheriff’s Sale - takes place After Lis Penden’s Filed, and Court Action Takes Place.

Then Sheriff’s Sale is Conducted, then Statutory Right of Redemption starts (6 Mos).

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Mortgage in Default Process -

  1. L_ P______ - Lawsuit Filed and Recorded. The Debt is Accelerated. L__ P_____ States Litigation is Pending Against Property Owners.
  2. C____ Ac____ - Takes Place
  3. Sh___ S____ - Highest Bidder Gets S______ Cert_____ of S___
  4. Stat_____ R____ of Red_____ - ___ Months Given to Owner
  5. S_____’s D____ - If no Redemption - Sherrif’s Certificate of Sale Holder Gets Full Title.
A

Mortgage in Default Process -

  1. Lis Pendens - Lawsuit Filed and Recorded. The Debt is Accelerated. Lis Pendens States Litigation is Pending Against Property Owners..
  2. Court Action - Takes Place
  3. Sheriff’s Sale - Highest Bidder gets Sheriffs Certicate of Sale
  4. Statutory Right of Redemption - 6 Months Given to Owner
  5. Sheriff’s Deed - If no Redemption - Sherrif’s Certificate of Sale Holder Gets Full Title.

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Mortgage Defaults -

At the Sheriff’s Sale what does the Highest Bidder receive and what happens next?

A

Mortgage Defaults -

Sheriff’s Certificate of Sale -

At Sheriff’s Sale the Highest Bidder receives“Sheriff’s Cert of Sale.” Next, Statutory Right of Redemption - follows for 6 months.

Note to Self: Mortgages - 6 mos to reinstate after sale / Trust Deeds - 90 days to reinstatte.before sale

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

In Mortgage Default

After the Sheriff’s Certificate of Sale is Given to Highest Bidder.What happens next?

A

Statutory Right of Redemption (Mortgages Defaults) -

The Owner is Given (6 months) to Reinstate. After Sheriff’s Sale Certificate of Sale (Given to Highest Bidder).

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Mortgage Sheriff’s Sale - Biddng

  1. Ex___ M___ Bid - Excess funds belong to borrower (minus foreclosure cost)
  2. N_ B___ - Lender bids and receives C_____ of S_____
  3. Insu_______ M____ B___ – Deficiency Judgment is obtained by lender when sale brings less than amt owed.
A

Mortgage Sheriff’s Sale - Bidding

  1. Excess Money Bid - Excess funds belong to borrower (minus foreclosure cost)
  2. No Bids - Lender bids and receives Certificate of Sale
  3. Insufficient Money Bid – Deficiency Judgment is obtained by the lender when sale brings less than amt owed.

Remember: Arizona law prohibits (Deficiency Judgment) on 2.5 acres or less or used as sfr)

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Trust Deed Documents -

  1. Promissory Note - Promise to R____ Debt (Amount, Rate, Pattern of Payments - No Collateral Reference)
  2. Trust Deed - Secures Note with C______/P______
  3. Trustor/Borrower; Beneficiary/Lender; Trustee/3rd Party with power to sell
  4. Trustee Acts by Ben______ Instructions, and Only when Trust Deed is Paid-Off or in Default.
  5. Defeasance (Pay-off) - D_____ of Rec______ Releases you from Deed of Trust; Beneficiary/Lender instructs Trustee to send - In 30 days of payoff.
A

Trust Deed Documents -

  1. Promissory Note - Promise to Repay Debt (Amount, Rate, Pattern of Payments - No Collateral Reference)
  2. Trust Deed - Secures Note with Collateral/Property
  3. Trustor/Borrower; Beneficiary/Lender; Trustee/3rd Party with power to sell
  4. Trustee acts by Beneficiary instructions, and only when Trust Deed is paid-off or in default.
  5. Defeasance (Pay-off) - Deed of Reconveyance releases you from Deed of Trust; Beneficiary lender instructs Trustee to send - 30 days of payoff.

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Non-Judicial (Trustee’s Power of Sale)

  1. Tr___ Instructed to S___ - Per Benificiary-Lender
  2. Not__ of Def___ and Tru__ S___ - Recorded by Trustee (County Recorder Office)
  3. N___ to Tr___/Borrower: Trustee sends “Notice of Default and Trustee Sale” to Tr____ and Anyone Who Recorded “Request for Notice of Default.
  4. R____ of Rein________ - Trustor/Borrower May Cure Default by Paying Back Balance Due and (Cost/Penalties) at Anytime Before Sale in (___ Days)
  5. Tr_____ Sale held - After 90 days Right of Reinstatement Period. Sale held and T____ Deed - to Highest Bidder.
  6. Tr____ D_____ - Given to Highest Bidder.

Def_____ J_______ prohibited - 2 1/2 acres or less (SFR/2Units)-

A

Trust Deed in Default (Non Judicial Foreclosure)

Non-Judicial (Trustee’s Power of Sale)

  1. Trustee Instructed to Sell - Per Benificiary-Lender
  2. Notice of Default and Trustee Sale - Recorded by Trustee (County Recorder Office)
  3. Notice to Trustor/Borrower**: Trustee sends “Notice of Default and Trustee Sale” **to Trustor and Anyone who Recorded “Request for Notice of Default.
  4. Right of Reinstatement - Trustor/Borrower May Cure Default by Payng Back Balance Due and (Cost/Penalties) at Anytime Before Sale in (90 Days)
  5. Trustee Sale held - After 90 days Right of Reinstatement Period. Sale held and Trustee Deed - to Highest Bidder.
  6. Trustee Deed - Given to Highest Bidder

Deficiency Judgement prohibited - 2 1/2 acres or less (SFR/2Units)

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Agreement for Sale is also know as?

1) Contract for S___ of R___ Es___\_; 2) L___ Con____; 3) C_____ for D___\_; 4) V_____’s L____

Entails the following:

1) A Contract for Sale of Property and Financing Instrument - All In One. 2) Deed is Not Delivered at Closing as With a Mortgage/Trust Deed. 3) At Closing Buyer Should “Record” Contract to Show “Equitable Title.” 4) Seller usually Delivers Deed to Buyer After Final Payment.

A

Agreement for Sale also known as:

1) Contract for Sale of Real Estate; 2) Land Contract; 3) Contract for Deed; 4) Vendor’s Lien

This type of contract entails the following:

1) A Contract for Sale of Property and Financing Instrument - All In One. 2) Deed is Not Delivered at Closing as With a Mortgage/Trust Deed. 3) At Closing Buyer Should “Record” Contract to Show “Equitable Title.” 4) Seller usually Delivers Deed to Buyer After Final Payment.

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is 1st step in Trustee’s Power of Sale?

A

Trustee’s Power of Sale - 1st Step

  1. Trustee Instructed to Sell - Beneficiary-Lender instructs trustee (3rd party) to sell. (Step 1)

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What does the Trustee do After Instructed to Proceed with Trustee’s Sale?

N___ of D____ and Tr____ Sale is Re______

A

Trutee’s Power of Sale (Step 2)

Notice of Default and Trustee Sale -

Is Recorded by Trustee with County Recorder Office (Step #2)

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

In a Trustee Sale - what is done with Notice of Default and Trustee Sale document?

A

Trustee’s Power of Sale - (Step 3)

Notice to Trustor/Borrower:

Trustee Records then Sends - Notice of Default/Default Trustee Sale to trustor and anyone who has recorded “Request for Notice of Default. (step 3)

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

In a Trustee’s Sale process, What Do Owners have Before the Sale and for What Time Frame?

A

Trustee’s Power of Sale - (Step 4)

Right of Reinstatement (90 Days) - Given to Trustor/Borrower, Who May Cure Default by Paying Balance Due plus (Cost/Penalties) at Anytime Before Sale in 90 days (step 4).

After Notice of Default & Trustee Sale sent out….

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

In a Trustee Sale process, what happens after 90 days of Right of Reinstatement period?

A

Trustee’s Power of Sale - (Step 5)

  1. Trustee Sale held - After 90 Days Right of Reinstatement Period, Trustee Deed - Given to Highest Bidder. (Step 5)

Deficiency Judgement prohibited - 2 1/2 acres or less (SFR/2Units)

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

In the Trustee Sale process, What is Given to Highest Bidder at the Trutee’s Sale (at the Final Step of Process)?

A

Trustee’s Power of Sale - (Step 6)

  1. Trustee Deed - given to Highest Bidder after 90 days Redemption Period at Trustee’s Sale (step 6)

Deficiency Judgement prohibited - 2 1/2 acres or less (SFR/2Units)

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Agmt for S___ aka C___ for S___ of R__ Es___, aka L___ C____, C____ for D___, and V_____ Lien

  1. Agreement used as S___ Fin______ (contract/financing all in one)
  2. Vend__/Seller and Vend__/Buyer
  3. At Closing: Buyer records contract to show ownership with no deed (Eq___ Ownership)

Remember Or Gives and EE receives

A

Agreement for Sale (Contract for Sale of Real Estate, Land Contract, Contract for Deed, and Vendor’s Lien)

  1. Agreement used as Seller Financing (contract financing all in one)
  2. Vendor/Seller and Vendee/Buyer
  3. At Closing: Buyer records contract to show ownership with no deed (Equitable Ownership)

Remember Or Gives and EE receives - Vendor gives financing to Vendee (Buyer)

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

A Sheriff’s Sale is held for what Type of Foreclosure?

A

Mortgages (Judicial Foreclosure) -

A Sheriff’s Sale is held for Mortgages, After Court Action. “Sheriff’s Certicated of Sale” Given to Highest Bidder. Then, Statutory Right of Redemption is Held for 6 Months by Mortgagor(Borrower).

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is Given to Highest Bidder in Sheriff’s Sale

A

Sheriff’s Certificate of Sale - is Given to Highest Bidder.

Statutory Right of Reemption- Begins for 6 months After Sheriff’s Certificate of Sale issued at Sheriff’s Sale. Then Sheriff’s Deed conveys full title.

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

After a Mortgage is Paid-Off, What is Issued in 30 Days by Lender?

A

Satisfaction of Mortgage (Defesance/Pay-off) -

For Mortgages: Lender Delivers in 30 Days of Pay-Off to Borrower.

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Mortgages have a Judicial or Non-Judicial Foreclosure?

A

Mortgages have Judicial Foreclosure -

  1. Equity of Redemtion - Held by Borrower
  2. Lawsuit (Lis Pendens) - Recorded States Pending Litigation.
  3. Court Action - Approval
  4. Sheriff’s Sale - Sheriff’s Cert of Sale (Highest Bidder),
  5. Statutory Redemption (6 mos) - for Borrower
  6. Sheriff’s Deed - Not Redeemed Given to Holder of Sheriff’s Cert of Sale.

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

In Trust Deeds, who are the Trustor**, **Beneficiary, and Trustee.

A

Trust Deeds (Parties) -

  1. Trustor/Borrower
  2. Beneficiary/Lender
  3. Trustee/3rd Party

Chap 17

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Trust Deed - For Defeasance (Pay-off) What Document Used For This Type of Pay-Off to be Sent to Trustor?

A

Deed of Reconveyance -

Beneficiary(Lender) Instructs Trustee to Process In 30 Days of Payoff to Trustor (Borrower).

Chap 17

30
Q

Is a Trust Deed Foreclosure Judicial or Non-Judicial?

A

Trust Deed Foreclosure - (Non-Judicial) both options avail.

  1. Lender Instructs - Trustee to Sell.
  2. Trustee Records - Notice of Default and Trustee Sale
  3. Trustee Sends Notice to Borrower/2nd Lien Holder
  4. Right of Reinstatement - Owner Bring Current Plus Cost/Penalties (90 Days - From Recording Notice of Default)
  5. Trustee Sale - Trustee’s Deed delivered

Deficiency Judgements - prohibited (SFR/2 Units) or 2 1/2 acres or less.

Chap 17

31
Q

What other Type of Sale Uses Judicial Proceedings as an Option and Forfeitures.

A

Land Contract Default Process: (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor’s Lien)

Option #2 - Forfeiture Action

  1. Reinstate (Grace Period) - 30 days to 9 mos.
  2. Depending on Purchase Price Already Paid. -
  • 1- 19% Paid- 30 days - single
  • 20%- 29% Paid (9pts) - 60 days - double
  • 30%- 49% Paid - (9pts) 120 days - double
  • 50%- More Paid - (50pts) 9 mos - baby born
  1. Complete Forfeiture Action After Grace Period Expires - (Bankruptcy’s Stop)

Option #1 - Judicial Forclosure - Accelertion Clause - exercised foreclose as mortgage.

  1. Equity of Redmption - Borrower holds
  2. Lawsuit (Lis Pendens) - recorded
  3. Court Action - takes place
  4. Sheriff’s Sale - Highest Bid (Sheriff’s Certificate of Sale)
  5. Statutory Right of Redemption - 6 mos begins
  6. No Redemption Done - Sheriff’s Deed issued

Chap 17

32
Q

These two theories relate to what?

  1. ____ Theory -States the Mortgage/Trust Deed DOES NOT Convey Any Ownership to Lender.
  2. ____ Theory - States Legal Title is Conveyed to Lender.
  3. Arizona Uses What Theory?
A

Lien vs Title Theory

  1. Lien Theory - States the Mortgage/Trust Deed DOES NOT Convey Any Ownership to Lender.
  2. Title Theory - States Legal Title is Conveyed to Lender.
  3. Arizona uses “Lien Theory.”

Chap 17

33
Q

A Legal Document Obtained by a Lender When a Foreclosure Sale Brings Less Than the Amount Owed.

  1. 2 1/2 Acres or less - (SFR/2Units) prohibit this document from being filed
  2. Married Couple - (Quit Claim Deed) Does Not Relieve Spouse From Liability of this Judgment.
A

Deficiency Judgment -

A Legal Document Obtained by a Lender When a Foreclosure Sale Brings Less Than the Amount Owed.

  1. 2 1/2 Acres or less - (SFR/2Units) prohibits Deficiency Judgment from being filed
  2. Married Couple - (Quit Claim Deed) Does Not Relieve Spouse From Liability of Deficiency Judgment.

Chap 17

34
Q

Bankruptcies Effect Foreclosures or Forfeitures in What Way?

A

Bankruptcies -

Stop Foreclosures or Forfeiture Process

Chap 17

35
Q

Property Given to Lender in Return for Cancellation of Debt (Subject to Superior and Subordinate Liens).

A

Deed in Lieu of Forclosure -

Property Given to Lender in Return for Cancellation of Debt (Subject to Superior and Subordinate Liens).

Chap 17

36
Q

Foreclosure with Multiple Liens

  1. Foreclosure of Sup_____ (Prior) Lien - May Cancel Subordinate Lien’s Interest
  2. Sub____ (junior) Lien - Has Right To Cure Superior Lien and Foreclose on Jr Lien.
  3. If Sub_____ (junior) Lien Foreclosed - Property Delivered to Highest Bidder Subject to Any Higher Liens.
A

Foreclosure with Multiple Liens -

  1. Foreclosure of Superior (Prior) Lien - May Cancel Subordinate Lien’s Interest
  2. Subordinate (junior) Lien - Has Right To Cure Superior Lien and Foreclose on Jr Lien.
  3. If Subordinate (junior) Lien foreclosed - Property Delivered to Highest Bidder Subject to Any Higher Jiens.

Chap 17

37
Q

Sale which the Loan Balance is Higher Than the Property Value. Lender Agrees to Accept Reduced (Short) Pay-Off.

A

Short Sale -

Sale which the Loan Balance is Higher Than the Property Value. Lender Agrees to Accept Reduced (Short) Pay-Off.

Chap 17

38
Q

A Sale in Which the Lender has Acquired the Property thru Auction or (Trustee Sale)

A

Bank Owned Property (REO - Real Estate Owned) -

A Sale in Which the Lender has Acquired the Property thru Auction or (Trustee Sale)

Chap 17

39
Q

An Arrangement Between a Borrower and Lender in Which the Lender Agrees to Delay Foreclosure.

A

Forbearance (Delay) -

An Arrangement Between a Borrower and Lender in Which the Lender Agrees to Delay Foreclosure.

HOLDING BACK…..THE PROCESS

Chap 17

40
Q

An Agreement Between a Borrower and Lender Changing Loan Terms.

A

Loan Modification -

An Agreement Between a Borrower and Lender Changing Loan Terms.

Chap 17

41
Q

Fix and Flips

  1. Owner Oc_____ (Not Sold/Leased) - Licensed Contractors - NOT Required to Perform All Improvements
  2. Licensed Contractors - Work Required -
  • Property Offered for Sale/Lease, or
  • Sold/Leased within 1 YR of Completion or Upon Certificate of Occupancy Issued.
  • Price is $1000 or more.
  1. No Permit - Gov Agency May Require a Permit
  • Owner to Obtain Permit Retroactively
  • Structure May be Demolished
A

Fix and Flips

  1. Owner Occupied (Not Sold/Leased) - Licensed Contractors - NOT Required to Perform All Improvements
  2. Licensed Contractors - Work Required -
  • Property Offered for Sale/Lease, or
  • Sold/Leased within 1 YR of Completion or Upon Certificate of Occupancy Issued.
  • Price is $1000 or more.
  1. No Permit - Gov Agency May Require a Permit
  • Owner to Obtain Permit Retroactively
  • Structure May be Demolished

Chap 17

42
Q

A Claim Against Property to Secure a Debt; Money Encumbrance.

A

Lien -

A Claim Against Property to Secure a Debt; Money Encumbrance.

Chap 18

43
Q

States the Litigation is Pending Against the Property Owners.

A

Lis Pendens -

States the Litigation is Pending Against the Property Owners.

Chap 17

44
Q

In a Mortgage Default when does Court Action take place?

A

Mortgage Default -

Court Action - takes place after Lis Pendens filed and before the Sheriff’s Sale.

6 Steps:

  1. Lis Pendens
  2. Court Action
  3. Sheriff’s Sale - Sherrif’s Cert of Sale (highest bidder)
  4. Redemption Period (6 Mos)
  5. Sheriffs Deed - Title Conveyed.

Chap 17

45
Q

In a Mortgage Default Process…

After Sheriff’s Sale held and Sheriff’s Certificate is issued and 6 Mos Statutory Right of Redemption has passed, What is Given to Convey Full Title?

A

Sheriff’s Deed -

Given to Convey Full Title, after Sheriff’s Sale held and Sheriff’s Certificate is issued and after 6 mos Statutory Right of Redemption has passed.

Chap 17

46
Q

E______ Of R_______

What Does Borrower Have, Prior to Sheriff’s Sale in a Mortgage Default?

A

Equity of Redemption -

Borrower Has this Status, Prior to Sheriff’s Sale in a Mortgage Default.

Chap 17

47
Q

A promise to repay the debt. Serves as evidence of debt, not as collateral?

A

Promissory Note -

A promise to repay the debt. Serves as evidence of debt, not as collateral.

Chap 17

48
Q

What is Another Name for Borrower in a Trust Deed. This Person Conveys Legal Title to the 3rd Party and Signs the Deed of Trust.

A

Trustor -

What is Another Name for Borrower in a Trust Deed. This Person Conveys Legal Title to the 3rd Party and Signs the Deed of Trust.

Chap 17

49
Q

3rd party who has power to sell the property at foreclosure, when borrower is in default. Must be instructed by lender.

A

Trustee -

3rd party who has power to sell the property at foreclosure, when borrower is in default. Must be instructed by lender.

Chap 17

50
Q

Another Name for the Lender in a a Deed of Trust. Lender Instructs Trustee (3rd party) to Sell at a Foreclosure.

A

Beneficiary -

Another Name for the Lender in a a Deed of Trust. Lender Instructs Trustee (3rd party) to Sell at a Foreclosure..

Chap 17

51
Q

N____ of Def____ and T_____’s Sale

When beneficiary instructs Trustee to force the sale. This document is recorded by Trustee. This documents is then sent to trustor (Borrower) and anyone else who has recorded request (seller and 2nd lien holder)

A

Notice of Default and Trustee’s Sale -

When beneficiary instructs Trustee to force the sale. This document is recorded by Trustee. This documents is then sent to trustor (Borrower) and anyone else who has recorded request (seller and 2nd lien holder)

Chap 17

52
Q

Trustor (borrower) Can Cure Default for Trust Deed, by Paying Back What is Owed Plus Cost and Penalties - Within 90 Days before Trustee’s Sale. This is called?

A

Right of Reinstatement (for Trust Deed Defaults)-

Trustor (borrower) Can Cure Default for Trust Deed, by Paying Back What is Owed Plus Cost and Penalties - Within 90 Days before Trustee’s Sale.

Chap 17

53
Q

Trust Deed in Default -

After the “Right of Redemption (90 days) has taken place. What happens next?

A

Trustee Sale -

Sale is held after the “Right of Redemption (90 days) has taken place. Then, “Trustee’s Deed” delivered to highest bidder to convey title.

Chap 17

54
Q

This Document conveys Title to Highest Bidder after Trustees Sale.

A

Trustee’s Deed -

This Document conveys Title to Highest Bidder after Trustees Sale..

Chap 17

55
Q

With a Trust Deed, the document used as a Defeasance (Pay-off) for balance paid in full and received from Trustor is called?

A

Deed of Reconveyance -

Beneficiary (lender) instructs Trustee to process in 30 days of payoff to Trustor (Borrower).

Chap 17

56
Q

Land Contract in default. Seller must give buyer grace period to reinstate (30dys - 9 mos), depending on percent of purchase price paid. Then may complete F___ A____.

A

Forfeiture Action -

Land Contract in default. Seller must give buyer grace period to reinstate (30dys - 9 mos), depending on percent of purchase price paid. Then may complete Forfeiture Action.

Chap 17

57
Q

L___ C_____ Default Process: (Agmt of S____, C___ for S___ of R__ E___, aka L___ C____, aka C___ for D____, V____’s L___)

Option #2 - Forfeiture Action

  1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
  • 1-19% (19pts) - 30 days - single
  • 20%-29% (9pts) - 60 days - double
  • 30%-49% (9pts) - 120 days - double
  • 50%-more (50pts)- 9 mos - max
  1. Grace Period Expires - Complete Forfeiture Action

Option #1 - Judicial Forclosure - Accelertion Clause - exercised foreclose as mortgage.

  1. Equity of Redemption - Held by Borrower
  2. Lawsuit (Lis Pendens) - recorded
  3. Court Action - takes place
  4. Sheriff’s Sale - Highest Bid (Sheriff’s Certificate of Sale)
  5. Statutory Right of Redemption - 6 mos begins
  6. No Redemption - Sheriff’s Deed issued
A

Land Contract Default Process (2 options): (Agreement of Sale aka Contract for Sale of Real Estate, aka Land Contract, aka Contract for Deed, aka Vendor’s Lien)

Option #2 - Forfeiture Action (Opt 1 Jud Foreclose)

  1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
  • 1-19% (19pts) - 30 days - single
  • 20%-29% (9pts) - 60 days - double
  • 30%-49% (9pts) - 120 days - double
  • 50%-more (50pts)- 9 mos - max
  1. Grace Period Expires - Complete Forfeiture Action

Option #1 - Judicial Forclosure - Accelertion Clause - exercised foreclose as mortgage.

  1. Equity of Redemption - Held by Borrower
  2. Lawsuit (Lis Pendens) - recorded
  3. Court Action - takes place
  4. Sheriff’s Sale - Highest Bid (Sheriff’s Certificate of Sale)
  5. Statutory Right of Redemption - 6 mos begins
  6. No Redemption - Sheriff’s Deed issued

Chap 17

58
Q

States that the Mortgage/Trust Deed DOES NOT Convey Any Ownership to Lender (Used in Arizona).

A

Lien Theory -

States that the Mortgage/Trust Deed DOES NOT Convey Any Ownership to Lender (Used in Arizona).

Chap 17

59
Q

States Legal Title is Conveyed to Lender. (not in AZ)

A

Title Theory -

States Legal Title is Conveyed to Lender. (not in AZ)

Chap 17

60
Q

In a Trust Deed Defeasance (Pay-off), What Document is Used for Pay-Offs and Sent to Trustor?

A

Deed of Reconveyance (Trust Deed Pay-Off) -

Beneficiary (Lender) Instructs Trustee to Send Trust Deed Pay-Off in 30 days to Trustor (Borrower).

Chap 17

61
Q

In Trust Deed - Defeasance (Pay-off), What Document is Sent to Trustor for Pay-Offs?

A

Deed of Reconveyance (Trust Deed Pay-Off) -

Beneficiary (Lender) Instructs Trustee to Send in 30 Days of Payoff to Trustor (Borrower).

Chap 17

62
Q

Lien Placed on Property with Owner’s Consent are called?

Three (3) Liens Examples

  1. Mortgagees, Trust Deeds, and Agreements of Sale.
  2. All Three Hypothecate Real Estate as Security for Debt.
A

Voluntary Liens -

Lien Placed on Property with Owner’s Consent.

Three (3) Liens Examples

  1. Mortgagees, Trust Deeds, and Agreements of Sale.
  2. All Three Hypothecate Real Estate as Security for Debt..

Chap 17

63
Q

Non-Judicial (Trustee’s Power of Sale)

  1. Tr___ Instructed to S___ - Per Benificiary-Lender
  2. Not__ of Def___ and Tru__ S___ - Recorded by Trustee (County Recorder Office)
  3. N___ to Tr___(Borrower): Trustee sends Notice of Default/Default Trustee Sale to Tr____ and anyone who recorded “Request for Notice of Default.
  4. R____ of Rein________ - Trustor/Borrower May Cure Default Pay Balance Due and Cost/Penalties at Anytime Before Sale (___ days)
  5. Tr_____ Sale held - Deed to Highest Bidder
  6. Tr____ Deed - Title to Highest Bidder.

Def_____ J_______ prohibited - 2 1/2 acres or less (SFR/2Units)-

A

Trust Deed in Default (Non Judicial Foreclosure)

Non-Judicial (Trustee’s Power of Sale)

  1. Trustee Instructed to Sell - Per Benificiary-Lender
  2. Notice of Default and Trustee Sale - Recorded by Trustee (County Recorder Office)
  3. Notice to Trustor/Borrower**: **Trustee sends** Notice of Default/Default Trustee Sale **to Trustor and Anyone who Recorded “Request for Notice of Default.
  4. Right of Reinstatement - Trustor/Borrower May Cure Default Pay Balance Due and Cost/Penalties at Anytime Before Sale (90 days)
  5. Trustee Sale held - Deed to Highest Bidder.
  6. Tr____ Deed - Title to Highest Bidder.

Def_____ J_______ prohibited - 2 1/2 acres or less (SFR/2Units)-

Chap 17

64
Q

Land Contract Default Process (2 options): (Agmt of S___, aka C____ for S___ of R__ E____, aka L___ C___, aka C____ for D___, aka V____’s L__)

Option #2 - Forfeiture Action

  1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
  • 1- 19% (20pts) - __ days - single
  • 20%-29% (9pts) - __ days - double
  • 30%-49% (9pts) - ___ days - double
  • 50%-more (50pts)- __ mos - max
  1. Grace Period Expires - Complete Forfeiture Action

Option #1 - Judicial Forclosure - Accelertion Clause - exercised foreclose as mortgage.

  1. Equity of Redemption - Held by Borrower
  2. Lawsuit (Lis Pendens) - recorded
  3. Court Action - takes place
  4. Sheriff’s Sale - Highest Bid (Sheriff’s Certificate of Sale)
  5. Statutory Right of Redemption - 6 mos begins
  6. No Redemption - Sheriff’s Deed issued
A

Land Contract Default Process (2 options): (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor’s Lien)

Option #2 - Forfeiture Action

  1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
  • 1- 19% (20pts) - 30 days - single
  • 20%-29% (9pts) - 60 days - double
  • 30%-49% (9pts) - 120 days - double
  • 50%-more (50pts)- 9 mos - max
  1. Grace Period Expires - Complete Forfeiture Action

Option #1 - Judicial Forclosure - Accelertion Clause - exercised foreclose as mortgage.

  1. Equity of Redemption - Held by Borrower
  2. Lawsuit (Lis Pendens) - recorded
  3. Court Action - takes place
  4. Sheriff’s Sale - Highest Bid (Sheriff’s Certificate of Sale)
  5. Statutory Right of Redemption - 6 mos begins
  6. No Redemption - Sheriff’s Deed issued

Chap 17

65
Q

E______ of R________

What does Borrower Have, Prior to Sheriff’s Sale in a Mortgage Default?

A

Equity of Redemption -

Borrower has this Status, Prior to Sheriff’s Sale in a Mortgage Default.

Chap 17

66
Q

Land Contract Default Process (2 options): (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor’s Lien)

Option #2 - Forfeiture Action

  1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
    * 1- 19% paid (20pts) - ___ days - single
  2. Grace Period Expires - Complete Forfeiture Action
A

Land Contract Default Process (2 options): (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor’s Lien)

Option #2 - Forfeiture Action

  1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
    * 1- 19% paid (20pts) - 30 days - single
  2. Grace Period Expires - Complete Forfeiture Action

Chap 17

67
Q

These options refer to what?

Option #2 - Forfeiture Action

  1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
    * 20%-29% Paid (9pts) - __ days - double
  2. Grace Period Expires - Complete Forfeiture Action
A

Land Contract Default Process (2 options): (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor’s Lien)

Option #2 - Forfeiture Action

  1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
    * 20%-29% Paid (9pts) - 60 days - double
  2. Grace Period Expires - Complete Forfeiture Action

Chap 17

68
Q

These options refer to what?

Option #2 - Forfeiture Action

  1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
    * 30%-49% Paid (9pts) - ___ days - double
  2. Grace Period Expires - Complete Forfeiture Action
A

Land Contract Default Process (2 options): (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor’s Lien)

Option #2 - Forfeiture Action

  1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
    * 30%-49% Paid (9pts) - 120 days - double
  2. Grace Period Expires - Complete Forfeiture Action

Chap 17

69
Q

These options refer to what?

Option #2 - Forfeiture Action

  1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
    * 50%-more (50pts)- ___ mos - max
  2. Grace Period Expires - Complete Forfeiture Action
A

Land Contract Default Process (2 options): (Agreement of Sale, Contract for Sale of Real Estate, Land Contract, Contract for Deed, Vendor’s Lien)

Option #2 - Forfeiture Action

  1. Reinstate (Grace Period) - 30 days to 9 mos. Depending on Purchase Price already paid.
    * 50%-more (50pts)- 9 mos - max
  2. Grace Period Expires - Complete Forfeiture Action

Chap 17

70
Q

What Does Borrower have, prior to Sheriff’s Sale in a Mortgage Default?

A

Equity of Redemption -

Borrower Has This Status, prior to Sheriff’s Sale in A Mortgage Default.

Chap 17

71
Q

E______ of R_______

What does Borrower Have, Prior to Sheriff’s Sale in a Mortgage Default?

A

Equity of Redemption -

Borrower Has this Status, prior to Sheriff’s Sale in a Mortgage Default.

Chap 17

72
Q

Who signs Deed of Trust?

A

Trustor Signs Deed of Trust -

Trustor is the Borrower and Conveys Legal Title to the Trustee.Therefore the Trustor is the only one who signs the “Deed of Trust”.

Chap 17

AZ Real Estate Agent License 2020 (23 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions