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22 Cards in this Set
- Front
- Back
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The monthly mortgage payment generally consists of four items PITI |
Principal interest taxes insurance |
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The legal procedure of enforcing payment of a debt secured by a mortgage or any other lead |
Foreclosure |
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After default and up to the time a foreclosure sale is held, the borrower has an equitable right to redeem the property by paying the principal amount of the debt, accrued interest, ... |
Equity of redemption |
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A borrower in default conveys title to the lender to avoid record of foreclosure. The disadvantage is that it does not illuminate other liens against the property. In addition, the lender may lose the right to claim against mortgage insurance or guaranteed programs such as FHA and VA. |
Deed in Lieu of foreclosure |
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… Is a court order stating that the borrower still owes the lender money. Even after foreclosure. |
Deficiency judgment |
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A) Possession of the property during the mortgage term as long as the borrower is not in default. B) redemption of the title and the mortgage lien released anytime before default by paying the debt in full (defeasance clause) |
Rights of the borrower include |
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A. Taking possession the property if the borrower default on mortgage payments and the lender is the purchaser at the sale. B. For closing on the property if the borrower defaults. C. The mortgage, which enables the lender to sell the mortgage and free up the money invested. The rate of assignment provides liquidity to mortgages because the lender can sell the mortgage at any time. |
Rights of the lender |
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… Provides for paying a debt through installment payments. A portion of each payment is applied first to the payment of interest. The remainder reduces the principal. |
Amortization |
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… The borrower pays interest only for a specified term. At the end of the term, the borrower pays the principal. |
Straight or term mortgage |
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… The mortgage rate floats based on the fluctuations of a standard index |
Adjustable rate mortgage (ARM) |
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… The monthly payments are lower in the early years of the mortgage term |
Graduated payment mortgage GPM |
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… The purchasers down payment is deposit it in a savings account with the lender |
Pledge account mortgage |
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Two or more parcels of real estate are pledged as security for payment of the mortgage debt |
Blanket mortgage |
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This clause allows certain parcels of property to be removed from the mortgage lien when the loan balance is reduced by a certain amount. Part of blanket mortgage |
Release clause |
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… A type of seller financing, is a mortgage given by a buyer to the seller to cover part or possibly all of the purchase price. You can also serve as the down payment. |
Purchase money mortgage |
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… Provides for installment payments that are not enough to pay off the principal and interest over the mortgage turn. Therefore, the final payment is much larger than any previous payment. |
Balloon mortgage |
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The lender participates in the profits generated by a commercial property used to secure payment of a debt in the mortgage loan. |
Share equity mortgage |
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… Is a loan against the equity in a home. It can be a first mortgage if the property is owned free and clear. It can be a second or junior mortgage if there is an existing first mortgage |
Home equity line of credit |
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Older people who need income and want to use the equity in their homes often use the |
Reverse annuity mortgage |
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The mortgage includes all furnishings in the unit. Personal property in addition to real property is pledge to secure payment of the mortgage loan such as major household appliances. |
Package mortgage |
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… Is a transaction in which a property owner sells a property to an investor who immediately leases back to the property to the seller has agreed in the sales contract |
Sale leaseback financing |
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… Ensure his mortgage loans to protect lenders in case of borrower default |
FHA financing the Federal housing administration |
