Real Estate- Maine Learning Group questions well answered rated A+

Real Estate- Maine Learning Group Equitable Right of Redemption - correct answer The right of a defaulted borrower to redeem the property after foreclosure proceedings have begun & before the foreclosure sale by paying off the loan balance, plus interest until the day of payoff & costs. Written Policy Manual - correct answer Identifies & describes the types of real estate brokerage relationships in which the broker & affiliated licenses may engage. (Maine requirement) National Association of REALTORS (NARS) - correct answer Lien Theory - correct answer Legal concept that regards a mortgage as a just claim on specific property pledged as security for a mortgage debt. Title Theory - correct answer Lender has a title interest to the property; a non-judicial foreclosure may be used if borrower defaults. Intermediate Theory - correct answer "Mixed Theory," lender has a lien interest in property unless borrower defaults; lender receives title property Alienation Clause - correct answer To transfer or convey property; (1) Voluntary: property is transferred freely by grantor (i.e., transfer or gift) (2) Involuntary: Property is transferred against will of owner (i.e., escheat, foreclosure, eminent domain, adverse possession) Escalation - correct answer May be found in an adjustable rate mortgage or index lease; Allows lender to adjust interest over life of loan or owner to adjust rent payment over life of lease. Based off of an index; Escalator clause due on sale clause - correct answer Found in mortgage land contract or deed of trust; Gives the lender right to call entire principal balance due when property is sold. (Also known as, Alienation Clause & Acceleration Clause) Default clause - correct answer Breach of contract or non-performance of contract; legal remedies may be pursued Acceleration Clause - correct answer States that upon default, all of the principal installments become due immediately. Subordination Clause - correct answer A creditor in a higher lien position agrees to subordinate / take lower lien position; Usually found in Junior Mortgages. Prepayment Clause - correct answer Allows for early payment of a debt; Open Mortgage Seasoned Mortgage - correct answer An underwriting term meaning payments have been made on time for at least one year. Lock-in clause - correct answer (1) When used in a closed mortgage, loan cannot be prepaid before maturity/specified date. (2) When a borrower applies for a loan, interest rate can be "locked in" & will not change if it closes by specified date; "locked" vs. "float" Defeasance Clause - correct answer When final payment has been made, lender's interest in the property has been 'defeated,' lender must release their interest in the property. Mortgage Release - correct answer When loan is paid in full, lender must release interest in the property; Satisfaction of Mortgage front-end ratio - correct answer percentage of borrower's gross monthly income that can be used to make a monthly payment