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Florida Real Estate chapter 12 - residential mortgages exam questions and answers.
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Florida Real Estate chapter 12 - residential mortgages exam questions and answers.
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Florida Real Estate chapter 12 -residential mortgages exam
questions and answers
lien theory* - answer -borrower retains title to property.
-lender is protected by lien on property
-if borrower defaults, lender will foreclose
title theory* - answer title to mortgaged property conveyed
through mortgage deed. or to trustee through a trust. if borrower
defaults, lender may take possession of property.
loan instruments - answer promissory note
mortgage
parties to a mortgage
promissory note* - answer serves as evidence of debt. mortgage
note lists penalties in case borrower doesn't make monthly
payments.
parties to a mortgage - answer mortgager (borrower) (debtor)
morgagee (lender) (creditor)
mortgage is considered chattel and may be sold to another investor
if desired
satisfaction of mortgage - answer day that mortgagor pays debt in
full, mortgagee executes a 'satisfaction of mortgage'. florida
requires 60 days for satisfaction (completed contract) to be sent.
lien will be removed.
, mortgage lien priority - answer when mortgage is recorded in
public records it BECOMES a lien on real property
first mortgage- first mortgage funds
second mortgage - borrower requires more funds he'll take a second
or junior mortgage.
subordination agreement- first lien on vacant parcel can
subordinate mortgage lien to lender providing construction funding
borrowers covenants and agreements - answer promise to repay -
also agreed to pay escrowed items
taxes and liens - will pay all to remove liens, including HOA
property insurance - promises to buy an extended coverage
occupancy - agrees to use property as principal residence for a year
maintenance and covenant of good repair - lender authorized to
make inspections. borrower promises to keep property in good
condition
covenant against removal
important mortgage provisions - answer prepayment clause
prepayment penalty clause
acceleration clause
right to reinstate
due on sale clause
defeasance clause
down payment - answer amount of cash a purchaser will pay at
time of purchase. earnest money amount applied to deposit amount
at closing
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