Georgia Real Estate Exam Prep 2

A buyer promises in writing to take over the sellers loan payments.

The sale of a property in order to satisfy an unpaid debt.

An item that's permanently attached to real property.

A mortgage with a loan guaranteed by the U.S. department of veterans affairs.

The paying off of a debt with regular installments over a fixed payment schedule.

Department of the U.S. government whose mission is to create affordable homes for all.

Protects the lender when they approve a loan with more than 75%-80% loan to value ratio of the financed purchase.

A survey system using points of reference and directional indicators to identify and locate a property for legal purpose

Money still owed by the borrower if the foreclosure sale does not bring in enough money to pay the debt owed.

A primary mortgage loan thats not guaranteed or insured by any government agency.

Altering the characteristics of an item from real property to personal property by removing it from the land.

An economic indicator to which interest rates are applied.

A trustor(borrower) grants title to a trustee(neutral third party) as security for a debt owed to beneficiary(lender)

Document unique to Georgia used to convey title to grantee(lender) until a debt is satisfied by the grantor(borrower)

An imaginary line that runs east and west and crosses the principal meridian at a specific point, reference point.

A statement of final loan terms and closing costs, provided to the borrower three days prior to closing.

A governmental survey system that describes land in reference to principal meridians and base lines.

A fixed rate mortgage in which the monthly payments increase over time according to a set schedule.

A specific tract of land with specific boundaries.

MARIA stands for method of annexation in relation to fixtures.

A loan in which the borrowers home equity is used as collateral.

Disclosure lender gives to borrower within three days of applying for a loan; discloses loan terms, interest rate.

The location of a property.

A buyer purchases a property and takes over payment of the sellers loan with the seller still liable for non payment.

Statement of how much of a debt is still owed.

Finances additions or modernization, with terms of up to five years.

In the event of buyer default, lender gives 30 days notice for the default to be cured, or the power of sale is invoked.

Increases the availability of financing for conventional mortgages by purchasing them from lenders in the primary market

Terms start at 10 years, longer loan terms are available to finance for homes permanently attached to their foundation.

The ratio of a loan compared to the value of the property purchased.

An open line of credit based on the available equity in the borrowers home.

One thirty-sixth of a township. In a government survey system, a township is divided into 36 sections.

A maximum interest rate above a given index that may be charged on an adjustable rate mortgage.

Bond, often tax exempt, issued by state and local governments. Theyre also known as munis.

An assurance from the lender that the borrower appears to have the funds and creditworthiness to close.

Allows the seller to offer financing by providing credit to the buyer. The buyer makes payments directly to the seller.

An imaginary line that runs north and south and crosses a base line at a specific point. Locates and describe land.

Organization pooled their savings, loaned it to others, then created more loans off of the money that was paid back.

A mortgage in which taxes and insurance are added to the payment for principal and interest.

Clause giving lender the right to sell property in case of buyer default without judicial foreclosure proceedings

Deed is released to borrower upon full payment of debt.

A mortgage that has lower initial payments that dont amortize, and require a lump sum be paid at a specific time.

An organization that purchases, owns, and manages real estate for its investors.

Document used to convey property as security for a debt when the grantor(borrower) conveys property to grantee(lender)

A maximum interest rate amount that a borrower may be charged.

A mortgage in which the periodic payments go to interest only, and the entire loan amount is due at the end of term.

Gives lender the power to make all debt due and payable at once.

A permanently affixed brass plaque thats numbered and used as a point of reference by surveyors when measuring elevation

Requires lender to use security instrument and transfer deed back to borrower once a debt is paid in full.

Method of identifying a property in written words that allows for interpretation of a propertys boundaries and location.

The opportunity for a buyer in default to pay the debt and recover rights to the property.

A mortgage whose rate adjusts based on changes in a market index.

An entity is used to pool mortgage loans and issue mortgage backed securities.

Located within the department of housing and urban development, which establishes requirements for loans they can accept

A lenders promise to the borrower that a specified loan will be provided to the borrower.

Growing crops, such as Christmas trees or corn, which are produced annually. Personal property of the planter.

Rights of the owners of a bordering property to the use of a stationary body of water, such as a lake or sea.

Mortgage that includes both real and personal property, such as commercial loan that includes business assets.

This is the market for loans sold by the primary market. A secondary lender will service the loan for the consumer.

Process overseen by court system, often lengthier and more expensive.

What is a buyers final inspection of the home to determine if conditions in the purchase agreement has been satisfied?

Federal agricultural mortgage corporation, created by congress, provides a secondary for rural utilitiy loans/mortgages.

First mortgage gets highest priority for payment, second is second priority.

Which act was created in response to redlining; provides oversight process to ensure lenders are meeting the credit need

Legal description that refers to lot and block number within a subdivision as indicated on a recorded subdivision plat.

Which act allows review of lending data to evaluate where mortgages are given and where theyre not?

A fixed rate mortgage in which the payment increases from a low base to a final level base.

Rights of the owners of a bordering property to the use of a flowing body of water, such as a river or creek.

The understanding that the first person to use the water had the right to it.

A square that is 6 miles by 6 miles (36 square miles) that makes up the principal unit of the rectangular survey system.

Doesnt make mortgages, but it insures the lender against loss.

Loans made to homeowners who do not qualify for standard home loans, may have high fees and costly prepayment.

Unfair lending practices aimed at poor and uniformed borrowers.

A service professional who acts as a liaison between borrowers and lenders for a fee.

The settlement of a real estate transaction.

This is where loans are originated. They are sold on the secondary mortgage market.

Groundwater is the water beneath the ground. Also known as percolating water.

Any mortgage that is below the first priority mortgage.

Computerized loan organization (CLO) is an online system consumers can use to compare mortgage options.

Requires a small amount of cash to close a loan. Borrowers must pay to insure the lender against loss in case of default

A written promise to repay a debt to a lender.

A horizontal point of reference from which surveyors can measure depth and height.

Interim financing for developing land. The contract allows for disbursements of funds at specific stages of construction

Which act prohibits kickbacks, undisclosed fees, and practices that limit consumer choices?

A temporary loan used to cover the interval between two transactions.

Federal national mortgage associations a private, profit-making corporation that operates under a congressional charter.

An entity that makes and services mortgage loans.

Automatic rights inherent in property ownership.

Bank deposits, such as those made to a checking account, which must be made available upon demand.

A fee equal to 1% of a loan amount. Its typically paid upfront to lower the interest rate on a loan.

A lack of mortgage funds available from lenders due to the pull out of depositor funds.

Point of beginning is a reference point making the beginning point of a metes and bounds description.

Which act requires full disclosure of loan terms when certain terms are used in advertising?

A type of loan used to fund more than one piece of property.

Type of loan where the payments dont cover the interest due, which increases the amount owed over time.

The amount of cash a buyer contributes to the purchase price ( as opposed to borrower funds).

Acceptance of a lower debt priority; allows junior lien to move up in priority and must be agreed to by both lienholder

Sale of a property at auction by a lender in order to pay debt owed by defaulted borrower.

Generally short term, this kind of financing is usually open-ended and is obtained to finance a construction project.

Substituting a new contract for an old one or substituting new parties to an existing contract.