Financing Documents
This deck covers key concepts and definitions related to financing documents, including loan proceedings, mortgage roles, and types of contracts.
If the buyer has paid less than 20% of the loan total, the seller can start forfeiture proceedings after?
Key Terms
Who or what is the mortgagee?
Lender
The lender has the mortgage on the property, so the lender is the mortgagee.
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| Term | Definition |
|---|---|
If the buyer has paid less than 20% of the loan total, the seller can start forfeiture proceedings after? | the payment is 30 days late. |
If the payment amount is between 20 and 30%, proceedings can start after? | 60 Days |
If the payment amount is between 30 and 50%, proceedings can start after? | 120 Days |
If the payment amount is more than 50%, proceedings can start after? | nine months. |
Elaina and Allen just purchased a home using a deed of trust. Which of the following is most likely true about their home loan? | A trustee will hold title until the loan is paid. |
Who or what is the mortgagee? | Lender |
Who or what entity has legal title to a financed property in a lien theory state? | The borrower |
When a mortgage is used as a security instrument, who holds the mortgage and the promissory note? | The lender holds the mortgage and the note. |
A ______ is a contractual agreement in which the buyer pays the seller the purchase price over time in a series of installments until the contract has been paid in full. | Land contract |
Who holds the promissory note while it's being repaid? | The payee |
Which statement describes hypothecation? | The process of pledging property as collateral for a loan |
What information is listed on the promissory note? | Loan amount and schedule of repayment |
When a mortgage is used as a security instrument, who holds the mortgage and the promissory note? | The lender holds the mortgage and the note. |
Who holds the promissory note when a deed of trust is used as a security instrument? | The lender |
Olivia took out a 15-year loan secured with a deed of trust. She worked two jobs in order to pay the loan back and finally made her last payment this month. What happens now? | The lender tells the trustee to release the title to Olivia. |
What is the trustee's role when a deed of trust is used to secure property for a loan? | To hold legal title to the property on behalf of the beneficiary until the loan is repaid |
Theo is a buyer who's contemplating a land contract. Why might he choose this route over traditional financing? | He doesn't qualify for traditional financing. |
Charles is selling his property to Seth. Charles is financing part of the transaction for Seth, who will make payments to Charles while Charles retains the property title. What is this an example of? | A land contract |
In which of these scenarios is an Arizona property seller allowed to initiate forfeiture after borrower default? | When the transaction uses an agreement for sale. |
Which statement best describes an amortized loan? | Debt that is paid off by making periodic payments consisting of interest and principal |