Term
A junior mortgage can trigger a due in sale clause.
T/F X |
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Definition
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Term
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Definition
| secures additional indebtedness that the borrower may have to the lender |
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Term
The due on sale clause makes the mortgage non assumable.
T/F |
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Definition
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Term
Loan modifications can be made with out the Guarantor's consent.
T/F |
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Definition
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Term
The guarantee does not show up on the Guarantors financial statements.
T/F |
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Definition
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Term
| What happens when a Guarantor goes into bankruptcy? X |
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Definition
| Payments made on the guaranteed debt may be recovered by the trustee |
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Term
| What are two devices to take some liability off of the Guarantor? |
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Definition
- dollar limit
- liable only for certain losses
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Term
| If bank A extends a mortgage, then B extends a subsequent mortgage....Then A extends more money. Who gets re paid in a default? |
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Definition
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Term
| A future advance obligation can be created in what ways? |
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Definition
- where the mortgagor has made written application for a mortgage loan and the mortgagee is contractually obligated to go through with the transaction
- where a revolving or construction loan is involved, the obligation is usually created by a loan agreement entered into between mortgagor and mortgagee
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Term
A debt exists at the time the obligation is made if a lender must convey a future advance.
T/F |
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Definition
| True- if it is optional, this is not the case...funds must be conveyed or required to be conveyed |
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Term
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Definition
| allows a lender to buy up other mortgages that a borrower may have |
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