Real Estate Test 3 Review

Real Estate Test 3 Review - Real Estate test three review:...

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Real Estate test three review: Know effective borrowing costs. Efbc if loan is paid off early Find balance at end of the third year (pv of remaining pmts) To find efbc enter pmt, n, pv (loan-costs), fv(found above) and solve for i Purpose of a mortgage: -set forth terms and conditions agreed on -pledges property as security -gives public / constructive notice of lenders intent -establish priority claim Hypothecation clause Hypothecation is a legal concept which allows you to put your house up as security for a real estate loan without actually surrendering it. You enjoy all the rights of possession and use and even have the right to sell. This is why people can say they own their house, when if fact they are buying it on the installment plan. Under the title theory of hypothecation the lender holds the legal title and the borrower owns the equitable title. Under the lien theory the borrower holds the legal title and the lender’s mortgage is a lien on the title. The granting clause either conveys title to the lender or creates a lien on the title, depending on which theory is used. Promissory note -contains owners personal pledge they will make good on the debt with personal assets. When amt I sold at foreclosure is les than total amt owed court can award or not at their discretion ??????????????????? -In it simplest terms, a promissory note is a written promise to repay a loan or debt under specific terms - usually at a stated time, through a specified series of payments, or upon demand. A promissory note will identify the parties, the amount of the obligation, some form of recitation of the consideration for the obligation (that is, what the debtor received in return for signing the note) and will
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Real Estate Test 3 Review - Real Estate test three review:...

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