VanEd-unit 6-financing and settlement

Term wraparound mortgage definition an alternative

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Term: Wraparound Mortgage Definition: An alternative finance method in which a lender (often a seller) makes a larger second loan that includes or "wraps" the first loan without disturbing its payment schedule. (a/k/a an all-inclusive deed of trust) Term: Yearly Cap Definition: Maximum interest rate for any given year of an A.R.M. loan.
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Term: Constructive Eviction Definition: Landlord's creation or allowing of conditions so bad that the tenant is effectively forced to move out. (e.g., failure to repair broken pipes.) Terminates the lease and releases tenant from responsibility to pay rent. Term: Discount Points Definition: An up front lender charge to increase the yield or lower the interest rate on a loan. 1 discount point = 1% of the loan amount. Typically it takes about 8 points to lower the loan rate 1 percent. Term: Portfolio Loan Definition: One held and serviced by the lender rather than sold on the secondary market Term: Hard Money Mortgage Definition: One in which the borrower gets cash. Contrast with Purchase Money Mortgage
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Term: VA - Veteran's Administration Definition: Administers a home loan guarantee program begun after WW II to enable returning veterans to buy homes with 100% financing, no down-payment, and no insurance premium on the loan Term: foreclosure Definition: Legal process by the lender to cause sale of a property in order to recover money lost through defaulted loan payments. Term: Intermediate theory Definition: Based on the principle of title theory but requires the mortgagee foreclosure to obtain legal title Term: mortgagee Definition: The lender; receives the mortgage from the borrower in exchange for the loan. Term: mortgagor Definition: The borrower; gives the mortgage to the lender in exchange for the loan
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Term: Negotiable instrument Definition: any written instrument (checks, publicly traded stocks, promissory note) that may be transferred by endorsement or delivery so as to vest legal title in the transferee. Term: Prepayment penalty Definition: the amount set by the creditor as a penalty to the debtor for paying off a debt before it matures Term: Satisfaction Definition: Payment of a debt or obligation such as a judgment. Term: Trustor Definition: The borrower in a deed of trust. Term: Carryback Financing Definition: Any financing in which the Seller is a partial or full lender.
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Term: Waiver Definition: To give up or surrender a right voluntarily.
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  • Mortgage loan

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