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Real Estate 306 | Questions And Answers Latest {} A+ Graded | 100% Verified
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Real Estate 306 | Questions And Answers Latest {} A+ Graded | 100% Verified
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Real Estate 306 | Questions And Answers Latest {2024- 2025} A+ Graded |100% Verified
Foreclosure - -The action of taking possession of a mortgaged property when the mortgagor fails to
keep-up their mortgage payments
Lien - -The right to take hold or sell the property of a debtor as security or payment for a debt,
mortgage.
- right to use property as collateral
Term Sheet - A non-binding financing commitment.
Credit Committee - A loan committee that consists of upper management of a lending institution with
the authority to approve loans that the initial loan officer does not have the authority to approve.
special purpose entity (SPE) - -An entity created for a specific purpose such as a Limited Liability
Company (LLC) or Limited Partnership (LP).
- interest or shares in the LLC/LP is what is sold to investors when they invest in a deal
Operating Agreement - identifies the relationship between investors/owners/developer in a a deal and
spells out their percentage ownership and any rights and responsibilities and profit splits
mortgage - -a specific type of loan that is used to buy real estate
- borrower agrees to pay the lender overtime in installed payments and divided into principal and
interest
note - -binds the borrower to repay the mortgage within an agreed period and outlines the terms of the
loan
-establishes interest rate
guaranty - Promise by a third-party entity, or individual, to pay or perform the obligations of the
borrower.
, amortization - -the reduction of a loan balance through payments (paying off the principal) made over a
period of time
term - he amount of time during which a borrower repays a loan if fully amortizing, or until the
outstanding loan balance, or balloon payment, is due if non-amortizing (i.e., interest only) or
partiallyamortizing.
principal - -The amount of money borrowed
- the return OF capital to the bank after amortization
intrest rate - -the percentage of a sum of money charged for its use
- return on capital for the bank after amortization
-index rate+ margin
index - - benchmark interest rate that reflects the general market conditions
- a widely available quoted rate
margin - the portion of the interest rate for a commercial teal estate loan that represents the lenders
premium for the risk they are taking loaning the money
loan to value (LTV) - -Ratio between property's value and the amount lent on it.
- LTV and risk and inversely related
Debt Service Coverage Ratio - -A measure of the cash flow available to pay current debt obligations
-NOI/ total debt service
Debt Service - Payments for the principal and interest owed on a loan for that period.
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