Sentences with phrase «property if a borrower defaults»

The legal process used to regain title to a mortgaged property if the borrower defaults.

The mortgage act allows private lenders to sell the property if a borrower defaults but they can only regain their investment if mortgages that came before are fully paid off.

Not exact matches

Under the Ontario Mortgage Act, the private lender will sell property in default to recoup if a borrower was unable to pay agreed mortgage fees.

If the borrower defaults in the payment of the debt, the trustee may sell the property without legal proceedings.

The mortgage company can only foreclose if there is a default in payments, a failure to pay property taxes, a failure to maintain insurance, or if the borrower / debtor is damaging the property intentionally or recklessly.

Since home loans are backed by a borrower's real property, a predatory lender can profit not only from loan terms stacked in his or her favor, but also from the sale of a foreclosed home, if a borrower defaults.

If the value of the property can not be sufficient to pay off the mortgage in case of default on the part of the borrower, then the purpose of using the property as collateral is defeated.

The legal right to legal property an owner gives to the lender as collateral for repayment of a debt if the borrower defaults.

If a property is sold as the result of a mortgage default, but the sale does not generate enough money to pay the outstanding balance and all associated costs, fees and interest, the insurer will pay the shortfall to the bank and will then have the right to enforce against each borrower personally for the deficiency.

+ read full definition in the property to pay investors back if the borrower defaults and the property needs to be resold.

If a borrower defaults, private lenders can sell off a property according to the mortgage agreement.

If the borrower defaults, the lender gets to keep all the money earned on the initial mortgage and all the money earned on the home - equity loan; plus the lender gets to repossess the property, sell it again and restart the cycle with the next borrower.

Lenders require the tax service fee because if a defaulting borrower is delinquent on property taxes, those taxes are deducted from the foreclosure sale and reduce the amount recovered by the lender.

Basically, if the Servicer refuses to let you exercise your rights, violates your rights, fails to inform you of programs available to correct the default, or makes a false assertion such as the Borrower doesn't occupy the property when they do, accelerates foreclosure - this constitutes a wrongful foreclosure.

If a borrower ever defaults on their loan, the lender can reclaim the property.

This pledge dies (is terminated) when the mortgage is either paid off in full or the property is repossessed (foreclosed) by the bank if not paid as agreed (borrower defaults).

If the borrower defaults on the 1st loan, the lien holder of the 1st will be able to foreclose on the property and wipe out the 2nd lien holder's interest in the property.

Most personal loans lack collateral — property that can be taken if the borrower defaults — so they rely on the integrity of the borrower to repay the loan's principal and interest.

If the borrower defaults, the assignment of lease and rentals gives the lender the right to receive rents from the tenants and to transfer the leases to a subsequent purchaser of the property.

The trustee must be impartial in this arrangement because he must be prepared to sell the property to satisfy the debt if the borrower defaults.

Thus, if a borrower defaults, the mezz provider becomes the property's owner and operator.

If the borrower defaults in the payment of the debt, the trustee may sell the property without legal proceedings.

Banks are typically averse to underwriting non-recourse loans as it means assuming more risk on their part as this type of loan only allows them to foreclose on the property in the event of a default, and does not allow them to seek additional money from the borrower if the proceeds from the foreclosure are less than what is owed on the loan.

The lender wants to make sure that if the borrower defaults, there will be sufficient equity in the property over and above the amount of the loan.

If the purchase money loan for any type of real property is financed by the seller and secured by that same property, the lender / seller may not obtain a deficiency judgment against the defaulting borrower / buyer..

This clause outlines how the lender can foreclose on the property if the borrower stops paying the mortgage, also known as defaulting on a home loan.

Signing Requirements of Lenders at Origination: There are two documents of concern to a mortgage lender: the note, which defines the borrower's payment obligations; and either a mortgage or deed of trust, depending on state law, which gives the lender the right to acquire the property through a foreclosure process if the borrower defaults on the payment obligation.

In addition, the lender faces the risk that the value of the property underlying the mortgage could drop in value to below the outstanding balance on the mortgage; if this event induces the borrower to default due to moral hazard, the lender must not only incur the costs of implementing a foreclosure but also must sell the property at a price that fails to recoup the lender's investment.