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Financing

Financing. Mortgages, Notes and Foreclosure. Concept. Mortgagor- borrower/debtor Mortgagee- secured creditor Writing required Debt Mortgage Note Filing. Regulation Z - Disclosure . Identity of creditor Cash price Annual percentage rate (APR)

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Financing

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  1. Financing Mortgages, Notes and Foreclosure

  2. Concept • Mortgagor- borrower/debtor • Mortgagee- secured creditor • Writing required • Debt • Mortgage • Note • Filing

  3. Regulation Z - Disclosure • Identity of creditor • Cash price • Annual percentage rate (APR) • Finance charge including any prepaid finance charges • Amount financed and itemization • (Continued on the next slide)

  4. Regulation Z - Disclosure • Total payment amount • Number of payments • Amount per payment • Due date for payments • Late payment charges

  5. Federal Laws Affecting Real Property Financing • Federal Consumer Credit Transaction Act • Truth-in-Lending Act • Home Mortgage Disclosure Act • Fair Housing Act • Community Reinvestment Act • Equal Credit Opportunity Act

  6. Important Clauses • Due on Sale • Late payment • Acceleration • Prepayment penalty • Balloon payment • Default and remedies • Integration-complete agreement

  7. Types of Mortgages • Purchase money mortgages • FHA mortgage • VA mortgage • Conventional mortgage • Second mortgage • Home-equity mortgage • Straight-term mortgage • (Continued on the next slide)

  8. Types of Mortgages • Subordinate mortgage • Wrap-around mortgage • Piggyback mortgage • Anaconda or dragnet mortgage • Adjustable rate mortgage (ARM) • Variable rate mortgage • Reverse mortgage • Shared appreciation mortgage

  9. Types of Charges • Actual costs • Commissions by loan brokers • Late charges • Government loan charges • Construction loan charges • Life insurance premiums • Prepayment penalties • Legal • Other

  10. Mortgage Transferability • Prohibition on assignment? • Assumption - original mortgagor, and transferee personally liable, property subject to foreclosure • Subject to - original mortgagor personally liable, transferee not personally liable, property subject to foreclosure

  11. Discharge of indebtedness • Original mortgage and note marked “cancelled” and returned to mortgagor • Release of mortgage filed

  12. Foreclosure • Default and remedies • Filing the petition • Notifying the required parties • Filing a notice of action (lispendens) • Foreclosure trial or hearing • Order of foreclosure • Sale and right of redemption • Deficiency • Deed in lieu

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