Chapter 6 (6)

In order for a buyer to take over a seller's existing loan on the property, the loan must contain a/an...?

assumption clause

An acceleration clause granting the lender the right to demand full payment of the mortgage upon a sale of the property is known as a...?

due on sale clause

By Seller Dayne being able to pay off the lender and regain ownership of the property, Seller Dayne would be exercising what type of legal remedy?

equitable redemption

Lien on all property?

general lien

A contract for deed that is used where a seller retains title until everything has been paid

land contract

According to lien theory, the lender retains equitable rights to the property, while the borrower retains?

legal rights

An instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation is know as a..?

mortgage

Seller Dayne was made aware by the trustee that the lender was wanting to proceed with foreclosure on his property. What type of financial agreement does Seller Dayne have with this lender?

mortgage agreement

What lien takes the takes the highest priority after a tax lien

mortgage lien

The charge payable to a lender by a borrower under the terms of the loan agreement if the borrower pays off the outstanding principal balance of the loan prior to its maturity is known as a...?

prepayment penalty

This refers to a stipulation that upon the payment of a specific sum of money to the holder of a trust deed or mortgage, the lien of the instrument as to a specifically described lot or area shall be removed from the blanket lien on the whole area involved...

release clause

Junior financing loans are also referred to as a...?

second mortgage

Mortgage lien is an example of..?

specific lien

A home equity line of credit is typically _________ to a first mortgage?

subordinate