1 / 15

CHAPTER TWO

CHAPTER TWO. FINANCING: NOTES AND MORTGAGES. Chapter Objectives. Define the mortgage note Define and explain the mortgage Identify the different mortgage clauses Explain and identify what constitutes mortgage default and foreclosure. Chapter Objectives Continued.

alyn
Télécharger la présentation

CHAPTER TWO

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CHAPTER TWO FINANCING: NOTES AND MORTGAGES

  2. Chapter Objectives • Define the mortgage note • Define and explain the mortgage • Identify the different mortgage clauses • Explain and identify what constitutes mortgage default and foreclosure

  3. Chapter Objectives Continued • Identify and explain alternatives to foreclosure • Define and explain bankruptcy

  4. Essential Elements of the Mortgage Note • Amount borrowed • Rate of interest • Payment amount, due date, and term • Maturity date • Reference to the mortgage • Default • Penalties for late payment

  5. Essential Elements of the Mortgage Note Continued • Acceleration Clause • Recourse vs. Non- Recourse • Assumability • Alienation Clause • Future Advances • Release of Lien

  6. The Mortgage Instrument • Mortgagor and Mortgagee • Promissory Note • Pledge of property as security • Obligation to pay

  7. Basic Mortgage Requirements • Borrower and Lender • Property Description • Covenants of Warranty • Provision between spouses • Covenants and other contractual agreements

  8. Mortgage Clauses • Impound Accounts • Taxes and Insurance • Taxes and other assessments • Hazard Insurance

  9. Mortgage Clauses Continued • Maintenance • Alienation • Subordination

  10. Mortgages- Other Characteristics • “Subject to” a mortgage • Mortgage Assumption • Junior Mortgage • Purchase Money Mortgage • Trust deeds • Land contracts

  11. Mortgage Default and Foreclosure • Breach of the mortgage contract and note • Alternatives to foreclosure • Restructuring the loan • Transfer to a new owner

  12. Mortgage Default and Foreclosure Continued • Voluntary conveyance to the lender • A “Friendly Foreclosure” • Extension Agreement • Deed in lieu of foreclosure • Judicial Foreclosure

  13. Mortgage Default and Foreclosure Continued • Non- Judicial Foreclosure • Equity of Redemption • Statutory Redemption • Junior liens are extinguished • Deficiency judgment

  14. Trust Deeds • A three party instrument • Trustor- borrower • Trustee- third party • Beneficiary- lender

  15. Bankruptcy • Chapter 7- straight bankruptcy • Chapter 11- business owners • Chapter 13- plan of reorganization

More Related