What are commercial leases escalator clauses tied to?
CPI Consumer Price Index
What is placing an item as collateral for a loan called?
(without giving up possession of the item)
What is it called when you deposit personal property with a lender as a security for the debt?
In a tight money market money is _______ and __________!!!
scarce and expensive
If a company is regulated by the DRE does and individual working in real estate lending have to have a real estate license?
If a company is regulated by the Department of Corporations is a RE license required to do lending?
What type of loan is a construction loan?
An interim loan
What is another name for a long-term loan?
A take out loan
what is the name of junior mortgage with a face value of the amount that it secures, plus the balance of the amount that it secures, plus the balance of any senior liens on the property. It includes all indebtedness
AITD All Inclusive Trust Deed
Who does the trustor pay on an AITD?
Who is the party responsible for making the payment to the lender of a senior loan involving and AITD?
It is the one who signed the note with the lender.... the initial owner of the home.
What is a hard money loan?
It is a loan that is secured by the borrower's existing property. Taking cash out of the equity of the property, and a lender may obtain a deficiency judgment against the borrower.
What is a purchase money loan?
It is a loan used to purchase the property and no deficiency judgement is allowed
What is a renegotiable rate mortgage (RPM)?
It allows the borrower to either pre-pay or renew (that is, renegotiate the interest rate) at three to five year intervals.
What is amortization?
A method of repaying a loan in equal installments which covers both the principal and the interest
What is a fixed-rate mortgage?
It offers the borrower a fully amortized long-term loan
At the end of the term of a partially amortized loan what happens?
The principal debt has not been liquidated so a balloon payment will be required at the end of the loan.
Where is the risk shifted when using alternative financing instruments?