Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Unit 12
Real Estate Finance
| Term | Definition |
|---|---|
| Deed of Trust | a deed to real property, which serves the same purpose as a mortgage, involving 3 parties instead of 2. The 3rd party hold naked title for the benefit of the lender |
| Lien Theory State | mortgage creates a lien right on the mortgagee with the mortgagor retaining the title |
| Title Theory State | borrower gives legal title to the lender during the time of the loan; borrower keeps a possessory right to the home; states in which a mortgage actually conveys title subject to a condition |
| 2 parts to a mortgage loan: | 1) a promise to pay 2) collateral |
| promissory note | the promise to repay the debt, defines payment terms, interest rate, date of repayment, prepayment penalties, purchase price and penalty if default |
| a mortgage does not mean money, it means: | the collateral for a loan; the collateral pledged to satisfy the debt; a collection of mortgage instruments |
| mortgage instruments | papers which pledge the property as collateral |
| 2 types of security instruments for a real estate loan | 1) a mortgage 2) Deed of Trust |
| 2 parties to a mortgage: | 1) mortgagor (borrower) who gives a mortgage |
Created by:
merettelynn
Popular Real Estate sets