Mortgages 91

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  1. Title theory states
    The law interprets that a mortgage, when given to a mortgagee, gives the mortgagee legal title to the property. Upon default, the mortgageee has possession rights
  2. Lien Thory State (Kentucky)
    the law interprets a mortgage as an instrument that creates a lien on the morgaged property. A mortgagee must foreclose through judicial procedure upon default by a mortgagor.
  3. Hypothecation
    in lien theory states, a mortagorpledges property without giving possession rights to the mortgagee, this act is called hypothecation
  4. Note
    the primary financial instrument is the note; the mortgage is secondary. The promissory note is the written promise to rapaya debt.
  5. Mortgage
    is the document that pledges property as collateral or security for the payment of the debt. Mortgage become effetive once recored in the county where property is located
  6. Trust Deed or Deed of Trust
    acts like a mortgage because it secures a property for the payment of a debt. These financial security instruments are used in Title Theory States. The parties to a trust deed are the trustor(borrower) trustee(3rd party) and beneficiary (lender)
  7. Deed of reconveyance
    when a borrower under a trust deed makes the final payment, the trustee is required to convey the title to the trustor.
  8. Discount points
    can be charged by a lender to make up the difference between the interest rate and the required investor yield. As a general rule of thumb, one discount point increases a lender's yield 1/8% therefore 8 discount points increase a lendersyield one percent
  9. Acceleration clasue
    this clause allows lender to demand fulpayment of the unpaid debt and any interest owed if the borrower defaults.
  10. Default clause
    in a note specifies the conditions of default. in order for a lender to forclose on a mortgage the note must contain a default and acceleration clause.
  11. Provisions of a mortgage documents
    a mortagege must be wrtitten and id the mortgagor and mortgagee. A mortgage must also contain a legal property description, a statment defining the interest being pledged, and mortgagging clasue
  12. Assignment
    is a transfer of contract rights .A lender may assign a mortgage to a third party.
  13. defeasance clause
    in a mortgage defeats the mortgagee's interest when the debt is paid in full
  14. escalation clasue (ARM)
    in a mortgag/note allows the lender to increase the interest rate.
  15. Assignement of rent clause
    in a mortgage allows the mortgagee to collect rent from any tenant who has possession of the mortgaged property, if the mortgagor default on the mortgage payment.
  16. A nondistrubance clause
    in a mortgage specifies that the mortgagee will not disturb the possession of a tenant if the tenant will pay rent to the mortgagee; this clause benefits the lessee/tenant
  17. subordination clause
    in a mortgage would require a lienholder to take a lower or junior position
  18. Alienation or do on sale clause
    requires full payment of principal if the mortgaged property is transferred or sold
  19. Land contract
    is a financial agreement between a buyer (vendee) and a seller (vendor). Legal title to property sold through a land contract is held by the vendor; the vendee has an equitable interest in the property.
  20. foreclosure
    is a law suit to stop an owner's right of redemption and to force the sale of the property for non-payment of a debt
  21. Deficiency judgement
    if proceeds are not sufficient to pay all the debts against a mortgaged property, a lienholder may seek a deficiency judgment. Is a personal judgment against the maker of the note for the unpaid balance of the debt.
  22. Deed in lieu
    when a deed of lieu of foreclosure is given, the owner has no redemption rights

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Author:
Cshowalter
ID:
333264
Filename:
Mortgages 91
Updated:
2017-08-02 18:06:58
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Mortgages 91
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Mortgages 91
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Mortgages 91
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