Mortgage

Which mortgage clause allows another mortgage created at a later date to take priority?

Which mortgage clause allows another mortgage created at a later date to take priority? Subordination. A subordination clause provides that the lender (usually the seller) voluntarily will allow a subsequent mortgage to take priority over there lender’s otherwise superior mortgage (the act of yielding priority).

Also, which mortgage provision allows another mortgage created at a later date take priority? A future advance is a clause in a loan contract that allows the borrower to receive additional funds after the loan is initially disbursed. Future advances are secured by collateral, which may include a home, business property, or other assets.

Subsequently, what is a subordinate clause in a mortgage? When you take out a mortgage loan, the lender will likely include a subordination clause. Within this clause, the lender essentially states that their lien will take precedence over any other liens placed on the house. A subordination clause serves to protect the lender in case you default.

As many you asked, what is a redemption clause? The redemption rights clause gives the owner of a property the right to reclaim his/her property during a foreclosure. What it ultimately means is that the ownership of auction. The clause is often included in a mortgage agreement.

Considering this, what is an acceleration clause in a loan? An accelerated clause is a term in a loan agreement that requires the borrower to pay off the loan immediately under certain conditions.In that context, reconveyance refers to the transfer of title to real estate from a creditor to the debtor when a loan secured by the property—i.e. mostly likely a mortgage with the property as collateral—is paid off.

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Is a HELOC a 2nd mortgage?

While a HELOC is commonly referred to as a second mortgage, a HELOC may be issued as a primary loan. If a home is free and clear, a lender who issues a HELOC would become the sole lien holder on the property, and hold a senior claim that’s prioritized ahead of future secured loans.

What is an example of subordinate clause?

A subordinate clause has a subject and a verb, but it cannot stand alone as a complete sentence. Let’s look at some examples; If you win the award (you=subject; win=verb) Since the sun will shine today (the sun=subject; will shine=verb)

What is a defiance clause?

A defeasance clause is a term within a mortgage contract that states the property’s title (a fancy word for “ownership”) will be transferred to the borrower (mortgagor) when they satisfy payment conditions from the lender (mortgagee).

Who can redeem the mortgage What is the procedure for redemption?

The mortgagor is entitled to get back his property on payment of the principal and interest after the expiry of the due date for the repayment of the mortgagee’s money. This right of the mortgagor is called the Right of Redemption.

Who can redeem the mortgage?

Section 91 lays down the several classes of persons, besides the mortgagor, who may be entitled to redeem the mortgaged property : Clause (a), any person (other than the mortgagee of the interest sought to be redeemed) having any interest in or charge upon the property; Clause (b), any person having any interest in, or …

What is redemption period?

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Redemption is a period after your home has already been sold at a foreclosure sale when you can still reclaim your home. You will need to pay the outstanding mortgage balance and all costs incurred during the foreclosure process. Many states have some type of redemption period.

What is an exculpatory clause?

An exculpatory clause is part of a contract that prevents one party from holding the other party liable for damages related to the contract. Exculpatory clauses are used quite often in purchases such as the ones included with an amusement park or plane ticket.

What is an extension clause?

A rule in a contract that lets the parties to continue it after the expiration date.

What is an example of an acceleration clause?

For example, assume a borrower with a five year mortgage loan fails to make a payment in the third year. The terms of the loan include an acceleration clause which states the borrower must repay the remaining balance if one payment is missed.

What does reconveyance deed mean?

A deed of reconveyance is a legal document that indicates the transfer of a property’s title from lender to borrower. The deed of reconveyance is typically issued after the borrower has paid off their mortgage in full. Some states do not use mortgages but use deeds of trust.

What does substitution of trustee and full reconveyance mean?

A document known as a substitution of trustee and full reconveyance identifies the person who has the authority to reconvey the property and remove the lien. Most importantly, a deed of full reconveyance, known as a satisfaction of mortgage in some states, transfers title back to the borrower.

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What is substitution of trustee?

A substitution of trustee simply names a new person to take over that position, as well as a secondary trustee if necessary. A substitution of trustee and full reconveyance serves two purposes: It enables a lender (such as a mortgage company) to appoint a new trustee. It allows the new trustee to release the lien.

What is a second mortgage called?

A second mortgage or junior-lien is a loan you take out using your house as collateral while you still have another loan secured by your house. Home equity loans and home equity lines of credit (HELOCs) are common examples of second mortgages.

What is a hemlock loan?

A HELOC is a line of credit that allows you to borrow money as needed with a variable interest rate, while a home equity loan is a lump sum that is disbursed upfront and paid back in fixed installments.

Is HELOC new mortgage?

A home equity line of credit, or HELOC, is a type of second mortgage that lets you borrow against your home equity. Somewhat like with a credit card, you use money from the HELOC as needed, then pay it back over time. With a HELOC, instead of borrowing a lump sum, you borrow money when you need it.

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