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Terms in this set (79)

-______: This section gives the lender "power of sale," meaning the lender can sell the property without judicial proceedings if the borrower defaults.
-_______: This section simply states that if another borrower assumes the loan attached to the security deed, it doesn't necessarily release the original borrower from liability for payment.
-________: allows the trustee (or the mortgagee, in the case of a mortgage) to sell the property in order to recover losses from borrower default using a non-judicial foreclosure process
-_________: states that the buyer will regain full title once the debt is fully repaidIt's sometimes pre-printed on the security deed itself.The lender is required to sign the document verifying release of the collateral and re-recording the security deed.Instead of releasing the deed by signing the original deed, the lender may instead execute and record a document called, "Cancellation of Deed to Secure Debt."Borrowers have either one recorded.
-__________: stipulates charges for loan payments received after their due date; usually noted in the promissory note attached to the security instrument
-___________: describes default (borrower fails to make a payment or to abide by the terms of the agreement) and creates a consequence of making the entire debt immediately due and payable.The lender must give the borrower at least 30 days from the date of notice to pay the entire debt owed.Borrowers who pull the funds together within five days of the auction date, they can get their property back.
-______ (aka _____ clause): allows the lender to make the entire loan due and payable immediately if the property is sold or otherwise transferred; tends to be included with VA, USDA, and FHA loans (not conventional loans, which aren't assumable)Prevents the borrower from selling the property after interest rates have gone up and passing on the low interest rate loan to a purchaser who's assuming the loanCan affect a buyer's ability to assume an assumable loan
-___________: waives borrower's right to claim the benefit of any homestead laws that would affect the lender's rights to collect the debt
The buyer's closing costs include:
-Appraisal and credit report fees
-Inspections: Typical inspections (all paid by the buyer, because they're performed at the buyer's discretion) include a general home inspection, pest inspection, and environmental testing for things like radon, lead-based paint, or mold. These costs don't appear on the Closing Disclosure.
-Georgia intangible tax: Georgia charges a tax of $1.50 for each $500 (or fractional part thereof) of the face value of any long-term note secured by real estate, with a maximum of $25,000. The intangible tax is paid when the security deed is recorded (within 90 days of closing).
-Mortgage fee: Any lender that closes a loan defined by the Georgia Residential Mortgage Loan Act as a mortgage loan and secured by residential real estate is required to collect and remit this fee.
-Lender's title insurance: The lender needs protection against a title defect just as much as the buyer does.
-Attorney's fees
-Loan fees for servicing the loan
-Recording fees to record the deed: Each county has its own rates, but rough estimates are $10 for the first page, $2 for each subsequent page, and $5 - $20 per document for rush recording.
-Mortgage insurance may be required for buyers who put less than 20% down or for buyers who finance with a non-conventional loan. With FHA-insured loans, lenders require mortgage insurance for the life of the loan.
-Tax (and often insurance) reserves: Most lenders require that the borrower establish and maintain a reserve so there will be sufficient funds to pay property taxes and renew hazard insurance when these items come due. RESPA regulates the amount of reserves that may be held by the lender.