NJ REAL ESTATE - CH: 13 Mortgages - Summary

The borrower who pledges real estate is know as a

mortgagor

The lender is the

mortgagee

The borrower signs a personal promise to repay as a ____1____ and also pledges the property in a __2__.

1. note or bond...... 2. mortgage

The borrower who fails to live up to the provisions of the mortgage is said to be in _____.

default

An ______ clause allows the mortgagee to declare the whole debt due and payable in the case of default.

acceleration

A _____ clause provides that when the debt has been paid, the mortgagee has no further claim on the property.

defeasance

An______ certificate is the borrower's statement of the remaining debt and interest rate.

estoppel

A ______ certificate is the lender's acknowledgment that the debt has been paid down to the certain amount.

reduction

The charging of higher rates that is legally allowed is know as

usury

______ are free of usury limits.

Lending institutions

NJ set high limits for sellers taking back financing on their own property and market-rate limits for......

3rd parties who make mortgage loans.

A ____ mortgage is the first one placed against the property in public records.

first

A further mortgage loan would become a second or _____ lien.

junior

Priority is set by the date of recording, unless ......

one lender agrees to "subordinate" a loan to another.

Full payment of a loan is acknowledged by the lender's signing of the ________ which should be entered in public records.

satisfaction of mortgage certificate

One who takes property _____ to an existing loan is not personally responsible in case of default.

subject

The buyer who ____ an existing loan makes a personal promise to repay.

assumes

An _____ clause provides that a mortgage cannot be assumed by anyone else but must be paid off if the property is sold.

alienation