FinancialInstruments
| Description: | All about Financing including: mortgages, deeds of trust, loans, & other $ terms |
| Category: | Real Estate |
| Created by: | Rapunzel86 on 2007-12-13 |
| Stack ID: | 110108 |
| Financial Description of Term | Financial Term/Definition |
| To pledge property as security for a loan without giving up possession is to... | Hypothecate (Under financing) |
| Property that is pledged as security for a debt is called... | Collateral |
| Value over and above whatever is not debt is called... | Equity |
| Unconditional promise made in writing to repay debt is called a... | Promissory Note |
| A written instrument to secure repayment of a debt for real property is a... | Mortgage |
| In a mortgage the buyer or borrower is called the... | Mortgagor |
| In a mortgage the lender is called the... | Mortgagee |
| When a morgage is sold or assigned to another lender is... | Assignment |
| A legal document in which the title to the property is transferred by a borrower to a third party as security for the beneficiary or lender is... | Trust Deed |
| In a deed of trust the borrower is called the... | Trustor |
| In a deed of trust the impartial third party is called the... | Trustee |
| In a deed of trust the lender is called the... | Beneficiary |
| Permits the trustee to sell the property if the borrower defaults, without a court of law is called... | Power of Sale |
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Mortgages Follow contract rules: must be in writing (statute of frauds); name/s of competent parties; legal description; consideration; state the debt; signed by borrower/s; defeasance clause AZ uses the Deed of Trust Security Instrument Parties Involved: Borrower/buyer=Mortgagor; Lender=Mortgagee; Can get assigned to different lenders. Rules for when a mortgage gets assigned to a different lender
Satisfied Mortgage Paid in full Satisfactory piece is recorded to release the debt NEEDS TO BE DONE WITHIN 30 DAYS OF FULL PAYMENT Foreclosure (FOR MORTGAGE INSTRUMENT STATES, WHICH AZ IS NOT, THE ORIGINAL FORECLOSED ON OWNER HAS A 6 MONTH REDEMPTION PERIOD AFTER THE SALE OF HIS PROPERTY TO BE PAID OFF AND TRY TO GET PROPERTY BACK.) (FOR DEED OF TRUST INSTRUMENT STATES, WHICH AZ IS, THE ORIGINAL FORECLOSED ON OWNER HAS 90 DAYS PRIOR TO SALE TO PAY OF ANY AND ALL DEBT OWED) Mortgage Instrument States' Foreclosure process: Public sale of property to satisfy debt/unpaid mortgage Succesful bidder gets Sheriff's deed If money from sale ISN'T SUFFICIENT to pay debt BORROWER RECEIVES DEFICIENCY JUDGEMENT If money from sale is in EXCESS of debt excess funds are RETURNED TO THE BORROWER (And then of course, as mentioned above, in mortgage instrument states, owner has 6 mo. redemption period after sale.) Types of Foreclosures Judicial-not used in az nonjudicial- sale of property can happen without court proceedings (used in az, since we'r a deed of trust state) Strict foreclosure- (not used in az, if used at all would be in mortgage instrument states) |
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