section 14 unit 2
This time, select the choice that best reflects the legal version of this Plain English statement: The lender allows the borrower to obtain another loan that will take lien priority to cover the costs of construction on the property as long as it's not more than $100,000.
"Lender agrees that this instrument shall be subordinate to a lien to be given by Borrower to secure funds for the construction of improvements on the Property provided that said lien is duly recorded and the amount secured by said lien does not exceed $100,000."
Andrea's lender has notified her of its intent to foreclose. Her loan is secured with a security deed. What rights does she have to redeem her property?
Andrea can cure the default and reinstate the loan
Select the choice that best translates this clause into Plain English: "Mortgagor may prepay the principal amount outstanding in whole or in part. The Note holder may require that any partial prepayments (i) be made on the date monthly installments are due and (ii) be in the amount of that part of one or more monthly installments which would be applicable to principal. Any partial prepayment shall be applied against the principal amount outstanding and shall not postpone the due date of any subsequent monthly installments or change the amount of such installments, unless the Note holder shall otherwise agree in writing."
The borrower is allowed to prepay the loan without penalty.
Which of these features is shared by the mortgage, the deed of trust, and Georgia's security deed?
The borrower is required to maintain the property and pay property taxes and insurance.
Select the choice that best translates this clause into Plain English: "Upon payment of all sums secured by this Mortgage, Mortgagee shall discharge this Mortgage without cost to Mortgagor. Mortgagor shall pay all costs of recordation, if any."
When the borrower has fully paid off the loan, the lender will record that the note is satisfied.
What type of clause is this? "If any monthly installment under this Note is not paid when due and remains unpaid after a date specified by a notice to Mortgagor, the entire principal amount outstanding and accrued interest thereon shall at once become due and payable at the option of the Note holder."
acceleration clause
What's the effect of these clauses? Match each clause to its purpose. this allows the lender to make the loan immediately due and payable if the borrower doesn't abide by the terms of the agreement.
acceleration clause
What's the effect of these clauses? Match each clause to its purpose. this allows the lender to make the loan immediately due and payable if the property is transferred
alienation clause
lends money
beneficiary
Match these items with the security deed, the deed of trust, or both if it is an item that the instruments share. borrower is required to maintain property
both
When the loan has been paid in full, how is this documented with each security instrument? mortgage executes satisfaction of mortgage
mortgage
borrows money to pay for property
mortgagor
typical when a borrower defaults on a deed of trust or ga security deed
non-judicial foreclosure
Match these items with the security deed, the deed of trust, or both if it is an item that the instruments share. lender has right to inspect property
both
Match each of these provisions to the description of where it appears. one of two methods a lender uses to indicate payoff of a promissory note in Georgia.
cancellation of deed to secure
Identify each of these items as belonging to foreclosure under a mortgage (assuming it doesn't include a power-of-sale clause) or a security deed. non-judicial foreclosure
deed of trust
Identify each of these items as belonging to foreclosure under a mortgage (assuming it doesn't include a power-of-sale clause) or a security deed. time and cost to foreclose tend to be less
deed of trust
Match these items with the security deed, the deed of trust, or both if it is an item that the instruments share. third party may hold title on behalf of a lender
deed of trust
Place each of these items with the document where it's found. reconveyance clause
deed of trust
When the loan has been paid in full, how is this documented with each security instrument? trustee executes deed of reconveyance
deed of trust
Match each of these provisions to the description of where it appears. used in the mortgage to describe the borrowers right to regain title when the debt is repaid
defeasance clause
typical when a borrower defaults on a mortgage
judicial foreclosure
Gina's mortgage payment arrives late one month. What language in the promissory note allows the lender to charge her a fee as a result?
late charge provision
Match each of these provisions to the description of where it appears. usually appears in the promissory note
late charge provision
Identify each of these items as belonging to foreclosure under a mortgage (assuming it doesn't include a power-of-sale clause) or a security deed. borrower has statutory right of redemption
mortgage
Identify each of these items as belonging to foreclosure under a mortgage (assuming it doesn't include a power-of-sale clause) or a security deed. judicial foreclosure
mortgage
Place each of these items with the document where it's found. defeasance clause
mortgage
What is the name of the clause that is standard in a deed of trust and Georgia's security deed, and that can be included in a mortgage, which allows the lender to foreclose non-judicially?
power of sale
What's the effect of these clauses? Match each clause to its purpose. if the borrower defaults, this allows the property to be sold using a non-judicial foreclosure process.
power of sale
Match each of these provisions to the description of where it appears. standard in the deed of trust and Georgia's security deed, but may be included in a mortgage
power-of-sale clause
Place each of these items with the document where it's found. late charge provision
promissory note
Which clause in the deed of trust and Georgia's security deed is the equivalent of the defeasance clause in the mortgage?
reconveyance
Match each of these provisions to the description of where it appears. used in deed of trust to describe the borrower's right to regain title when debt is repaid
reconveyance clause
What's the effect of these clauses? Match each clause to its purpose. this ensures that the borrower will regain full title to the property once the loan is fully repaid.
reconveyance clause
Match these items with the security deed, the deed of trust, or both if it is an item that the instruments share. A two-party agreement in which title is conveyed to lender until note is paid
security deed
When the loan has been paid in full, how is this documented with each security instrument? lender signs original deed or executes cancellation of deed to secure debt
security deed
Ruby is reviewing her note and security deed before she signs the loan agreement. Can you identify which items she may find in her documents, and which she won't find? acceleration clause
will find
Ruby is reviewing her note and security deed before she signs the loan agreement. Can you identify which items she may find in her documents, and which she won't find? power-of-sale
will find
Ruby is reviewing her note and security deed before she signs the loan agreement. Can you identify which items she may find in her documents, and which she won't find? defeasance clause
won't find
Ruby is reviewing her note and security deed before she signs the loan agreement. Can you identify which items she may find in her documents, and which she won't find? judicial foreclosure clause
won't find
Ruby is reviewing her note and security deed before she signs the loan agreement. Can you identify which items she may find in her documents, and which she won't find? reconveyance clause
won't find
