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KES RE financing

Acceleration clause Exists in M,D to assist the lender in foreclosure (Caused by failure to pay)
Adjustable rate mortgage (ARM) Loan characterized by fluctuating interest rate.
Alienation clause States that ballance is due and payable at lenders option if property is sold by the borrower.
Amortized loan Loan which principal and interest is payable in installments. Typically monthy
Assumption of mortgage Acquiring title where mortgage exists and assuming liability for terms and conditions.
Balloon payment Final payment of mortgage that is larger due to loan not being fully amortized on last payment.
Beneficiary Lender in a deed of trust. Also trust estate
Comprehensive Loss Underwritting Exchange (CLUE) DB of customer claims history allowing insurance companies to access prior claim information in the underwriting and rate processing
Debt to income (DTI) Total debt vs total gross income
Deed in lieu of foreclosure Deed given by Mortgagor by mortgagee when Mortgagor is in default. Mortgagor avoids foreclosure.
Deed of reconveyance (Release deed) when D of Trust has been repaid the beneficiary makes written request that the trustee convey title back to grantor.
Deed of trust Used to create a mortgage lien where the borrower conveys title to a trustee who holds it as security for the note holder (lender).
Defeasance clause Clause in leases and mortgages that cancels specified right on occurrence of specific condition. Exists in M,D (ex: cancel mortgage upon repayment of loan)
Deficiency judgement Personal judgement levied against borrower when foreclosure sale does not cover mortgage debt.
Discount points Used to increase in lenders yield (rate of return)
the vig Interest on a Shylock loan
Shylock Loan shark.
Equity The difference between the market value of the property and the amount still owed.
Foreclosure Property used as security for debt is sold to satisfy debt.
Growing-equity mortgage A loan where monthly payments increase annually with the increase used to directly to reduce principle ballance. Shortens loan period.
Homeowners insurance Covers residential RE owners against loss from fire theft, public liability.
Hypothecation To pledge property as security or loan without giving up possession
Index An objective economic indicator to which rate for adjustable rate mortgage is tied.
Interest A charge for the use of money, expressed as a percentage of remaining ballance.
Interest-only loan Loan that only requires interest payment with principle due at end of term
Lien theory A theory where mortgager retains both legal and equitable title that serves as security for debt.
Loan origination fee A charge to cover expenses involved in generating a loan.
Loan-to-value ratio (LTV) The percentage of the sales price or appraised value, whichever is less, that the lender is willing to lend
Margin Premium added to index rate representing the lender's cost of doing business
Mortgage The conditional pledge of RE as security for the payment of debt, also doc creating mortgage.
Mortgagee A lender in a mortgage loan transaction.
Mortgagor Borrower in a mortgage loan transaction
Negative amortization Loan increases due to difference between payment cap and actual needed to decrease loan amount.
Negotiable instrument Written promise or order to pay specific sum that may be transferred by endorsement or delivery. Transferee then has origional payee's right to payment.
Note A negotiable instrument, similar to a check or bank draft. Holder may transfer by sign over assigning to 3rd party or delivery to 3rd party
Novation Substituting a new obligation for an old one or substituting new parties to existing obligation.
PITI Principle, interest, taxes, insurance
Prepayment penalty A penalty (a clause in the mortgage note) for paying off the loan early.
Promissory note (Note, financing instrument) borrower's personal promise to repay a debt according to the terms.
Release deed (Deed of Reconveyance) transfers rights given a trustee under a deed of trust loan back to grantor after repayment
Reverse mortgage Loan which home owner receives lump sum, , monthly payments, or line of credit on property secured by mortgage. Loan is repaid at specified time or death of owner or sale
Satisfaction of mortgage Doc acknowlegeing repayment of mortgage debt
Short sale Sale of property ion which sale price is less than remaining indebtedness.
Straight loan A loan in which only interest is paid during term of loan. Entire Principle amount is due with final interest payment.
"Subject to" A clause in a contract specifying exceptions or contingencies of a purchase
Title theory Principle in which the mortgagor conveyed legal title to the mortgagee and trains equitable title and the right of reposition . Lender hold legal title therefore has right of immediate possession.
Trustor A borrower in a deed of trust loan transaction; one who places property in a trust. also called grantor or settler.
Usury Charging interest in excess of the maximum rate allowed by law.
Advantages of home ownership 3 If market increases value goes up, ownership interest increases as mortgage payments are made, tax deductions.
Possible tax deductions Mortgage interest, RE taxes, loan origination fees, discount points, prepay,ent penalties
Maker The borrower
Loan origination The processing of a mortgage application
ARS33-801 thru 821 D
AZ beneficary D
Az certificate of sale M
AZ Deed in lieu M,D
AZ Deed of Reconveyance D
AZ Defeasance clause M,D
AZ Deficiency judgement M,D
AZ Equitable title M,D,A
AZ Equity of Redemption M,D
AZ Foreclosure M,D
AZ Forfeiture Clause A
AZ Interlocutory A
AZ Les Pendens M,D,A
AZ Naked Title D
AZ Nonjudicial Foreclosure D,A
AZ Notice of Default M,D
AZ Notice of election to forfeit A
AZ Notice of sale M,D
AZ Payment Default M,D,A
AZ Power of Sale Clause M,D
AZ Promissory Note M,D
AZ Right of Reinstatement D
AZ Satisfaction M
AZ Sherriff's Deed M
AZ Statutory Redemption M
AZ Statutory Time Period M
AZ Strict Foreclosure M,A
AZ Trustee D
AZ Trustee's Deed D
AZ Trustee's Sale D
AZ Trustor D
AZ Vendee M,A
AZ vendor M,A
AZ Writ of Execution M
Arizona is what type of theory state Lien theory in mortgage and deeds of trust
Title theory states The bower actually conveys legal title to the mortgagee
Lien theory states Mortgagor retains both legal and equitable
Satisfaction Release or discharge when note is fully paid returning to borrower All interest in RE origionally conveyed to lender. Should be entered into public record to show debt has been removed from property
Created by: KimSchroeder
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