Chapter 13 Mortgages

written pledge of real estate as security for a loan

mortgage

property acquired by lenders

real estate owned (REO)

lenders statement on how much remains on a debt

reduction certificate

lenders statement that debt has been repaid in full

satisfaction of mortgage

document given to purchaser of foreclosed property.

sheriffs deed

proceeding to auction foreclosed property.

sheriffs sale

lender agrees to accept sale proceeds even if less than debt

short sale

arrangement by which mortgage holder gives up priority

subordination agreement

clause stating that in case of default, the whole debt is immediately payable

Acceleration Clause

borrowers statement of how much remains on the mortgage debt

Estoppel Certificate

to seize and sell property pledged for a debt

Foreclosure

pledging property as security without surrendering possession

Hypothecation

clause stating that if property is sold, debt is immediately payable

alienation clause

personal promise/obligation to repay money lent. Also known as a note

bond

failure to live up to any part of the mortgage

default

clause ensuring that after payment lender has no claim on the property

defeasance clause

court order that borrower pay money lost by lender after foreclosure

deficiency judgement

A lender who receives a pledge of property to secure a debt.

mortgagee

A borrower in a mortgage loan transaction. owner of the property.

mortgagor

personal promise to repay a loan similar to a bond

note

paying off mortgage prior to due date

prepayment

charging an unreasonably high rate of interest.

usury