Unit 12: residential mortgages

A financing technique wherein the seller agrees to deliver the deed at some future date and the buyer takes possession while paying the agreed amount. Also contract or agreement for deed

• Contract for deed (land contract)

• Discount points

• Loan-to-value ratio (LTV)

• Note

An impound account required by most lenders that require borrowers to pay in advance monthly installments for property taxes and hazard insurance. The monthly escrow payment is one-twelfth of the estimated annual expense for property taxes and the hazard insurance premium

• Equity

• Escrow

• Loan servicing

• Receivership clause

The market value of a property less any debt against it, in a business entity, assets minus liabilities equals capital (owner equity) a system of legal rules administered by a court of chancery

• Subject to

• PITI

• Equity

• Default

A mortgage on property that is superior in right to any other mortgage

• Defeasance clause

• Assignment of mortgage

• Buydown

• First mortgage

A written statement that bans the signer from making a claim inconsistent with the instrument (commonly used with a mortgage assumption)

• Estoppel certificate

• Land development loan

• Mortgagee

• Patrial release clause

The right of a mortgagor before a foreclosure sale, to reclaim forfeited property by paying the entire in debtness

• Mortgagor

• Assumption

• Equity of redemption

• Hupothecation

Stipulation in a mortgage that the entire unpaid balance of the debt may become due and payable if a default of expressed conditions should occur

• Title theory

• Short sale

• Acceleration clause

• Takeout commitment

A financing technique in which points are paid to the lender by the seller or builder that lowers (buys down) the effective interest rate paid by the buyer/borrower, thus reducing the amount of the monthly payment for a set period of time.

• Buydown

• Deed in lieu of foreclosure

• Foreclosure

• Subordination agreement

The buyer of real property that is already mortgaged assumes liability for the mortgage payments of the original loan that remains on the property

• Satisfaction of mortgage

• Lid pendens

• Assumption

• Interest

A type of financing that funds the purchase of multiple real estate properties at the same time

• Novation agreement

• Mortgagee

• Loan origination fee

• Blanket mortgage