Chapter 9 Quiz - Key Concepts

A document that transfers ownership of personal property, such as a car or furniture, from one person to another.

A system where the seller of goods or services allows the buyer to pay for them over time, usually with interest charges.

A legal process where a lender takes possession of a property after the borrower fails to make loan payments.

A type of lien that gives the government a claim on a property for unpaid taxes.

A type of loan where interest is only paid during the loan term and the principal is paid in full at the end.

A loan that's used to bridge the gap between a short-term loan and a long-term loan.

A long-term loan that replaces a short-term loan.

A loan that is used to finance the construction of a building.

A loan provided to a borrower as a backup plan, typically used when a borrower needs funds but is unsure of the exact loan amount required.

A penalty charged to a borrower for paying off a loan early.

A type of contract that allows a buyer to make payments on a property over time, with the seller retaining ownership until the final payment is made.

A clause in a mortgage that requires the lender's approval before the loan can be transferred to a new borrower.

A legal document that outlines the terms of a loan, including the principal amount, interest rate, and repayment schedule.

A legal claim placed on property to secure a debt. It could arise due to unpaid taxes or other financial obligations.

A clause in a mortgage or deed of trust that allows the lender to demand full payment of the loan if the property is sold.

A clause in a mortgage or deed of trust that allows the lender to demand full payment of the loan if the borrower defaults on payments.

A type of mortgage where the borrower makes payments that only cover the interest on the loan, and the principal is paid in full at the end of the loan term.

A mortgage loan that allows the borrower to make payments that include both principal and interest. The principal is gradually paid down over the term of the loan.

A type of loan where the borrower makes payments that only cover interest for a set period of time. At the end of this period, the borrower must make a large lump sum payment to cover the remaining principal.

A payment that is made in addition to the regular mortgage payment to reduce the outstanding principal balance.

A clause in a mortgage or deed of trust that allows the borrower to pay off the loan early without penalty.

A clause in a mortgage or deed of trust that allows the lender to call in the loan if the property is sold. This means the borrower must pay off the entire loan balance when the property is sold.

A type of foreclosure where a lender takes back a property from a borrower because they have failed to pay their mortgage. The borrower is given notice of the foreclosure process and has the opportunity to redeem the property before the lender takes possession.

A type of foreclosure where a lender can directly take possession of a property without going through a court. This is usually done for properties that are not occupied or have low value.