unit 16 real estate exam

Who is the mortgagor?

The borrower.

Who is the mortgagee?

The lender.

Who is the trustor?

The borrower in a deed of trust.

Who is the trustee?

The third party managing/holding the deed of trust.

Who is the beneficiary?

The lender in a deed of trust.

What is a promissory note?

The borrower's written promise to repay the debt.

What is the mortgage or deed of trust?

The security instrument that secures the debt with a lien on the real estate.

Why is the mortgage or deed of trust recorded?

To provide constructive notice of the lender's interest.

What happens when the loan is fully paid?

The borrower receives a satisfaction or release, which clears the lien from the public records.

What can happen after default?

The lender may accelerate the loan, foreclose, and potentially cause the borrower to lose title.

What is acceleration?

Making the entire remaining loan balance immediately due.

What is a deed in lieu of foreclosure?

The borrower voluntarily transfers the property to the lender instead of going through formal foreclosure.

Does a deed in lieu eliminate junior liens?

No.

What is a short sale?

A sale where the lender agrees to accept less than the outstanding loan balance.

What is a deficiency?

The difference between the debt owed and the amount received from the property sale.

What type of foreclosure does Illinois use?

Judicial foreclosure.

What mortgage theory state is Illinois?

Intermediate mortgage theory.

Does Illinois have a statutory right of redemption?

No.

Does Illinois have an equitable right of redemption?

Yes.

Does Illinois have a statutory right of reinstatement?

Yes.

What does a successful bidder receive at an Illinois sheriff's sale?

A certificate of sale until the sale is confirmed by the court.

What does the successful bidder receive after confirmation?

A sheriff's deed, which is a quitclaim deed in this situation.