California Real Estate Principals C-8
About this set
Created by:
isaulr on April 23, 2012
Subjects:
California Real Estate Principals
Log in to favorite or report as inappropriate.
Order by
41 terms
Terms | Definitions |
|---|---|
 Acceleration Clause | Clause used in a deed of trust that gives the lender the right to demand payment in full upon the happening of a certain event. |
| Adjustable Rate Mortgage | Mortgage loans on which the interest rate is periodically adjusted to more closely coincide with current rates. |
| Alienation Clause | A type of acceleration clause, calling for a debt under a mortgage or deed of trust, to be due in its entirety upon transfer of ownership. |
| Amortization | Payment of debt in regular, periodic installments of principal and interest, as opposed to interest-only payments. |
| Amortization Chart | A schedule of monthly payments that varies according to interest rates and number of monthly payments. |
| Annual Percentage Rate | The total cost of financing expressed as one simple annual percentage rate. This rate must be clearly expressed on any loan agreement. |
| Assumption | Agreement by the buyer to take over the financial responsibility for real property under the existing note and trust deed. |
| Beneficiary | A lender for whose benefit a trust is created in those states where trust deeds are commonly used instead of mortgages. |
| Default | A failure to perform the financial obligation to pay under a loan. |
| Deficiency Judgment | The amount for which the borrower is personally liable on a note and mortgage if the foreclosure sale does not bring enough to cover the debt. |
| Equal Credit Opportunity | Federal law granting women financial independence and preventing lenders from considering such negative credit apects as the possibility of a woman having children and dropping out of the labor market. |
| Equitable Title | Ownership by one who does not have legal title, such as a vendee under a land contract or, technically, a trustor under a deed of trust. |
| Equity | The ownership interest in real property; it is the market value minus any unpaid loan amount. |
| Grace Period | A period of time past the due date for a payment (mortgage, insurance, etc.) during which a payment may be made and not considered delinquent. |
| Graduated Payment Mortgage | A mortgage or deed of trust for which the payments increase over the term of the loan. The payment may increase as the buyer's earnings increase. |
| Holder in Due Course | A holder of a check or note who takes the note in good faith, on the assumption it is valid. |
| Hypothecation | The principal of using the real property as security for a debt while the borrower retains possession. |
| Interest | Money charged for the use of money |
| Junior Lien or Second Trust Deed | A type of lien that is subordinate to prior lien. |
| Land Contract | An installment contract for the sale of land. The seller (vendor) has legal title until paid in full. The buyer (vendee) has equitable title during the contract term. |
| Legal Title | The kind of title held by the vendor under a land contract and the trustee under a deed of trust. They are still owed money by the buyer. |
| Leverage | The use of financing to allow a small amount of cash to purchase and control a large property investment. |
| Point | A financing charge equal to one percent of the amount of the loan. |
| Prepayment Penalty | A penalty under a note, mortgage, or deed of trust imposed when the loan is paid before it is due. |
| Promissary Note | A promise in writing to pay a specified amount during a limited time, or on demand, to a named person. |
| Purchase Money Instrument | The original loan taken out when purchasing a property, not a refinanced or junior loan. |
| Reconveyance Deed | An instrument used to transfer title back from a trustee to the equitable owner of real estate. |
| Reinstatement Period | A limited amount of time during which the trustor has the right to pay all past due payments and charges due on a loan to bring it current. |
| Request for Notice of Default | A recorded form requiring the trustee to notify other creditors in the event of a default on the deed of trust to a property. |
| Right to Cancel | Part of the Truth in Lending Law that allows a borrower to rescind a loan transaction until midnight of the third business day, on business loans and second trust deeds secured by a borrower's residence. |
| Straight Note | A nonamortized note for which the principal is due in a lump sum upon maturity. |
| Subordination Clause | An agreement by which a lender substitutes a junior loan position for a senior loan position. |
| Trust Deed | An instrument used in place of a mortgage in most western states that is based on the Spanish legal tradition. Property is transferred to a trustee by the borrower (trustor) in favor of the lender (beneficiary) and reconveyed upon payment in full. |
| Trustee | In a deed of trust, the person who acts as an intermediary between the trustor and the beneficiary. |
| Trustee's Sale | A sale at auction by a trustee under a deed of trust, pursuant of foreclosure proseedings. |
| Trustor | The borrower under the deed of trust. |
| Truth in Lending Act | Regulation Z under the Federal Reserve regulations that requires a credit purchaser be advised, in writing, of all costs connected with the credit portion of their purchase. |
| Usury | Charging an illegal rate or amount of interest on a loan. |
| Vendee | Purchaser or buyer, especially on a land contract. |
| Vendor | The seller of the property under a land contract. |
| Wraparound Trust Deed | A second trust deed for which the monthly payment includes the amount of monthly payments on the existing first trust deed. |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.