Outline_7B_Vocabulary

Outline_7B_Vocabulary - Outline 7B Vocabulary Chapter 14:...

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Outline 7B Vocabulary Chapter 14: Realized gain or loss Sale or other disposition Sale or exchange Amount realized FMV of other property received Liability on the property disposed of Mortgage : “A lien (security interest) on real property” Assuming a mortgage “Taking upon oneself the obligations of a mortgagor toward a mortgagee, generally as part of the purchase price of a parcel of real estate. By assuming the mortgage rather than taking Subject to the Mortgage, the purchaser becomes personally liable on the debt. The seller is not relieved of the obligation unless the lender agrees to do so in a Novation . Many lenders refuse to allow mortgage loans to be assumed unless they approve of the transaction; often they require points or increase the face rate of interest” Property taken subject to a mortgage “Assignment or transfer of real estate where the purchaser agrees to take over monthly payments of principal and interest, but does not assume personal liability for the obligation. If the purchaser defaults, the lender
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This note was uploaded on 11/07/2011 for the course ACCT 508 taught by Professor Frankel during the Spring '10 term at S.F. State.

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Outline_7B_Vocabulary - Outline 7B Vocabulary Chapter 14:...

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