Music /Real Estate Notes Georgia Exam Prep: Finance and Closing Part 2
Real Estate Notes Georgia Exam Prep: Finance and Closing Part 2
This deck covers key concepts and terms related to finance and closing in real estate transactions, specifically for the Georgia exam. It includes important clauses, procedures, and financial instruments.
The lender must give the borrower at least _ from the date of notice to pay the entire debt owed.
30 days
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Key Terms
Term
Definition
The lender must give the borrower at least _ from the date of notice to pay the entire debt owed.
30 days
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It 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).
Due-on-sale clause (aka alienation clause)
It waives borrower’s right to claim the benefit of any homestead laws that would affect the lender’s rights to collect the debt.
Waiver of Homestead
Lenders will generally try to work with borrowers to remove a loan from default status. This may be referred to as
the pre-foreclosure stage
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
When a mortgage is sold, what happens?
The note is endorsed and the mortgage is assigned.
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| Term | Definition |
|---|---|
The lender must give the borrower at least _ from the date of notice to pay the entire debt owed. | 30 days |
It 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). | Due-on-sale clause (aka alienation clause) |
It waives borrower’s right to claim the benefit of any homestead laws that would affect the lender’s rights to collect the debt. | Waiver of Homestead |
Lenders will generally try to work with borrowers to remove a loan from default status. This may be referred to as | the pre-foreclosure stage |
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 |
When a mortgage is sold, what happens? | The note is endorsed and the mortgage is assigned. |
When a borrower has paid off the loan, how is the release handled if the security instrument is a mortgage? | The lender executes and records a satisfaction of mortgage and returns the note to the borrower. |
Financing for a real estate transaction can use a note with a , a note with a deed of trust, or, in Georgia, a note with a security deed. | Mortgage |
How’s the Georgia intangible tax computed? | It’s based on the amount borrowed, and is $1.50 per each $500 or fractional part thereof, with a maximum of $25,000. |
Borrower surrenders deed to the lender; doesn’t eliminate junior liens (as foreclosure would). | Deed in Lieu of Foreclosure aka Voluntary Conveyance of Deed |
Lender forgives missed payments as long as the borrower has resumed making the required payments on time. | Forbearance (aka moratorium) |
Borrower pays all amounts owed (possibly entire loan amount); must occur within certain time frame. | Reinstatement or Redemption (Repayment) |
Borrower sells property for less than loan balance plus closing costs. | Short Sale |
Borrower work with lender to restructure or modify the terms of the loan agreement to be able to continue to make payments; sometimes called recasting the loan. | Loan Modification |
Lender agrees to defer loan payments for a certain period of time; sometimes agreed to in situations like borrower job termination. | Extension agreement |
Borrowers go through legal process to discharge or restructure their debts. | Bankruptcy |
Lender sells the security deed at a discount to an individual who is willing to deal with the borrower in default and to take the risk regarding the sales price at the foreclosure sale. Their relative positions in the negotiation rest on their knowledge of the market. | Sale of the Loan |
It will allow the lender to place a lien against any current or future property the borrower owns, until the losses are recovered. It will extend to co-signer. | blanket lien |
Does the FHA allow deficiency judgments for loans it insures? | NO! |
Paid as an interest-only or partially amortized loan with a lump-sum payment, usually at the end of the loan term. | Balloon loan |