Mortgage Fundamentals
This document details the financial rights and obligations of borrower and lender.
Answer: What is the mortgage loan agreement (or note and mortgage)?
Clause allowing lender to demand full repayment when borrower cannot pay.
Answer: What is the acceleration clause?
Court-supervised reorganization for a troubled business.
Answer: What is Chapter 11 bankruptcy?
Key numbers describing market conditions are called market what?
Answer: What are market indicators?
Land and permanent improvements together are called this.
Answer: What is real estate?
Clause requiring borrower to maintain hazard insurance and giving lender joint control of proceeds.
Answer: What is the hazard insurance clause?
Most common home loan term length.
Answer: What is 15–30 years?
Traditional liquidation bankruptcy.
Answer: What is Chapter 7 bankruptcy?
Primary source for household demographic data.
Answer: What is the U.S. Census Bureau?
An example of real property.
Answer: What is land and buildings?
Clause allowing lender to demand full payoff if property is sold.
Answer: What is the due-on-sale clause?
A mortgage where loan balance exceeds property value.
Answer: What is underwater (or negative equity)?
Court-supervised repayment plan for households.
Answer: What is Chapter 13 bankruptcy?
Intersection of transportation modes historically drives city growth.
Answer: What is transportation?
Type of co-ownership combining single ownership and tenancy in common.
Answer: What is condominium ownership?
The lender who receives the mortgage claim is known as this.
Answer: What is the mortgagee?
Protects lender if borrower defaults when down payment is low.
Answer: What is private mortgage insurance (PMI)?
Mortgage default can remain on credit report for this long.
Answer: What is 7 years?
Difference between market value and cost to reproduce new.
Answer: What is depreciation?
Seller’s minimum acceptable price.
Answer: What is ask price?
The borrower pledging the property is also called this.
Answer: What is the mortgagor?
Second mortgage based on home equity.
Answer: What is a home equity loan (or HELOC)?
Risk of foreclosure often travels with this financial risk.
Answer: What is bankruptcy?
Key indicator used to evaluate real estate cycle position.
Answer: What is vacancy rate (or absorption rate)?
Publicly traded real estate asset.
Answer: What is a REIT?