CHAPTER 12 REVIEW QUESTIONS

  1. The instrument that contains the amount of the loan, interest rate, payment provisions, and other terms of the loan is the ___ ___.
    promissory note
  2. A mortgage is a ___ ___ ___.
    pledge of security
  3. The clause in a mortgage that protects the borrower's interest and requires the lender to acknowledge performance by the borrower is the ___ clause.
    defeasance
  4. The clause that allows a parcel of property to be sold free and clear of a blanket mortgage is the ___ clause.
    release
  5. A ___ ___ is a written agreement in which a lender agrees with the property owner to change the priority of liens.
    subordination agreement
  6. If a borrower was in default, and the lender wished to call the entire balance of the loan due and payable, the mortgage would have to contain an ___ clause.
    acceleration
  7. If a buyer were to take over the balance of an existing mortgage in such a way that the seller remained solely responsible for a deficiency judgment, the property was sold ___ ___ ___ ___.
    subject to the mortgage
  8. When a lender allows a new borrower to take responsibility for a mortgage and note, and releases the original borrower from liability for the mortgage and note, the process is called ___ ___ ___.
    assumption with novation
  9. When a lender is requested by a borrower to verify the outstanding balance of a loan, the lender would give the borrower an ___ ___.
    estoppel letter
  10. The percentage figure borrowers must be provided with that includes all costs associated with a loan is referred to as the ___.
    APR
  11. A ___ ___ is a personal debt based on the promissory note.
    deficiency judgment
  12. The right of a borrower to cure a default prior to foreclosure is called the ___ ___ ___.
    equity of redemption
  13. Foreclosure is ___ of the mortgage.
    enforcement
  14. A ___ ___ is the primary claim on a property which takes precedence over all other subsequent (junior) mortgage claims.
    first mortgage
  15. ___ is the difference between the current market value of a property and the amount the owner still owes on the mortgage.
    Equity
Author
mccullochhelen
ID
331988
Card Set
CHAPTER 12 REVIEW QUESTIONS
Description
REVIEW QUESTIONS
Updated