RE Principles Ch 8 (new)
Terms
undefined, object
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- When an owner uses a property as security for a loan, but does not give up possession this is called ________.
- HYPOTHECATION
-
A netural third party is part of what?
(filing the..) - TRUST DEED (TITLE)
- In a trust deed, who is the trustor?
- THE BORROWER
-
Who owns bare legal title to a property encumbered by a trust deed?
( who usually is this party) -
THE TRUSTEE
(the trustee is usually the title company who has a duty to the bank or loan agency) - The purpose of a reconveyance deed is what?
- TO DEED THE PROPERTY TO THE BORROWER AFTER A NOTE SECURED BY THE DEED HAS BEEN PAID IN FULL.
- An "or more" clause allows what in a loan?
- TO PAY OFF LOAN EARLY WITH NO PENALTY/
- Someone who buys an existing negotiable note is known as:
-
THE HOLDER IN DUE COURSE
( taken usually for consideration in good faith that loan is current and in good standing) - What is the remedy for default of payment on a "note"
- FORECLOSURE
- Who must sign the reconveyance deed?
- THE TRUSTEE
- The promissory note is the ______ of the debt and the trust deed is the ______ for the debt.
-
1) EVIDENCE
2) SECURITY - What are the requirements of a Promissory Note? (6)
-
1) Writting
2) Legal Capisity to Contract
3) Signed by Borrower
4) Payable on demand at a given time
5) Paid to bearer
6) Voluntarity delivered by borrower - An interest only note is referred to as an _______ note.
- STRAIGHT
- A payment that includes periodic payments that are FIXED and include both principal and interest are ______________ Notes.
- FULLY AMORTIZED INSTALLMENT NOTES
- A Note where the interest can change up or down on the term of the loan.
-
ADJUSTABLE NOTE
( Known as a ARM Adjustable Rate Mortgage) - The parties of a trust deed include:
-
1) Trustor: BORROWER
2) Trustee: Neutral Party holds the title
32) BENEFICIARY: Lender: Holds note - The fact that the "owner" has the rights to all increase of equity in the property is known as:
- EQUITABLE TITLE
- A ____________ is a judgement against a borrower for the unpaid amount and interest of a loan when a borrower defaults on a loan.
- DEFICIENCY JUDGEMENT
- If the borrower can get their loan payment up to date within FIVE days of the trusee sale, this causes ___________ of the loan to occur.
-
REINSTATEMENT
( loan continues as if there were no laspes, though credit may be damaged for showing 60 or 90 day late payments) - In California, most loans pass through a _______ deed.
-
TRUST DEED
*Easier forclosure process. Trusee holds title which makes things faster and easier in case of default. - When a party is behind in loan payments, what NOTICE must be filed to begin the forclosue process?
- NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST
- What is the time frame for forclosure from start to finish ( minimum)
-
THREE MONTHS AND 21 DAYS
( three months for Notice to satisfy the loan..20 days after the notice is served)