Real Estate Financing: Principles (Chapter 14)
Study this set o nline at: https://www.cram.co m/flashcards/real-estate-financing-
principles-chapter-14-373138 2
provi des that i f a borrower def aul ts, the l ender has the ri ght to accel erate the
accel erati on cl ause maturi ty of the debt - to decl are the enti re debt (pl us accrued i nterest and costs)
due and payabl e i mmedi atel y
l oan characteri z ed by a f l uctuati ng i nterest rate, usual l y one ti ed to a publ i shed
adj ustabl e rate mortgage (ARM ) i ndex; caps f or adj ustment on peri odi c i nterest, l i f eti me i nterest, and payment
amounts are normal
prevents the borrower f rom l etti ng someone el se assume the debt wi thout the
al i enati on cl ause
l ender's approval
l oan i n whi ch pri nci pal as wel l as i nterest i s payabl e i n peri odi c i nstal l ments over
amorti z ed l oans
the term of the l oan
, Real Estate Financing: Principles (Chapter 14)
Study this set o nline at: https://www.cram.co m/flashcards/real-estate-financing-
principles-chapter-14-373138 2
f i nal payment of a mortgage l oan that i s l arger than the requi red peri odi c
bal l on payment
payments because the l oan amount was not f ul l y amorti z ed
person f or whom a trust operates or i n whose behal f the i ncome f rom a trust estate
benef i ci ary i s drawn; a l ender i n a deed of trust l oan transacti on; reci pi ent of personal property
i n a wi l l
debt servi ce pri nci pl e and i nterest payment on a l oan
deed gi ven by the mortgagor to the mortgagee when the mortgagor i s i n def aul t
deed i n l i eu of f orecl osure under the terms of the mortgage; avoi ds f orecl osure butdoes not remove l i ens f rom
property "f ri endl y f orecl osure"
Study this set o nline at: https://www.cram.co m/flashcards/real-estate-financing-
principles-chapter-14-373138 2
provi des that i f a borrower def aul ts, the l ender has the ri ght to accel erate the
accel erati on cl ause maturi ty of the debt - to decl are the enti re debt (pl us accrued i nterest and costs)
due and payabl e i mmedi atel y
l oan characteri z ed by a f l uctuati ng i nterest rate, usual l y one ti ed to a publ i shed
adj ustabl e rate mortgage (ARM ) i ndex; caps f or adj ustment on peri odi c i nterest, l i f eti me i nterest, and payment
amounts are normal
prevents the borrower f rom l etti ng someone el se assume the debt wi thout the
al i enati on cl ause
l ender's approval
l oan i n whi ch pri nci pal as wel l as i nterest i s payabl e i n peri odi c i nstal l ments over
amorti z ed l oans
the term of the l oan
, Real Estate Financing: Principles (Chapter 14)
Study this set o nline at: https://www.cram.co m/flashcards/real-estate-financing-
principles-chapter-14-373138 2
f i nal payment of a mortgage l oan that i s l arger than the requi red peri odi c
bal l on payment
payments because the l oan amount was not f ul l y amorti z ed
person f or whom a trust operates or i n whose behal f the i ncome f rom a trust estate
benef i ci ary i s drawn; a l ender i n a deed of trust l oan transacti on; reci pi ent of personal property
i n a wi l l
debt servi ce pri nci pl e and i nterest payment on a l oan
deed gi ven by the mortgagor to the mortgagee when the mortgagor i s i n def aul t
deed i n l i eu of f orecl osure under the terms of the mortgage; avoi ds f orecl osure butdoes not remove l i ens f rom
property "f ri endl y f orecl osure"
