Module 12

Module 12 contains a discussion of real estate finance, including title theory and lien theory, elements of a promissory note and a mortgage instrument, the various features of a mortgage, loan-to-value ratio, discount points and calculating the yield on a loan, methods of purchasing a mortgaged property, estoppel certificates and the assignment of a mortgage, and the elements of the foreclosure process.

When you finish reading this module you will be able to:

  1. Distinguish between title theory and lien theory.
  2. Describe the essential elements of a promissory note and a mortgage instrument.
  3. Describe the various features of a mortgage including loan-to-value ratio, down payment, equity, interest, discount points, loan servicing, loan origination, escrow account, and PITI.
  4. Calculate loan-to-value ratio.
  5. Explain the use of discount points and calculate approximate yield on a loan.
  6. Distinguish among the various methods of purchasing mortgaged property.
  7. Explain the purpose of an estoppel certificate and an assignment of a mortgage.
  8. Explain the foreclosure process and distinguish between judicial and nonjudicial foreclosure.
  9. Describe the mortgagor’s and mortgagee’s rights in a foreclosure.

 

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Module 12

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Module 19

Module 20