Chapter 9,10,11 – Financing Sources in Real Estate Transactions

Westmont College Practical Real Estate Law By Hinkel Book Report

University of Baltimore

Real Property Law/REED 315.WB1

ASSIGNMENT 4  

(Chapters 9, 10 & 11-Hinkel, Practical Real Estate Law Textbook)

 Directions: Please read the following questions carefully and answer as fully as possible. There is no need to go to any resource other than your textbook, the power points, and the discussion forums for the answers. I have given you each chapter from which to find the answer above each set of questions in which it corresponds.

 Chapter 9-Financing Sources in Real Estate Transactions

1. Discuss fully each type of residential mortgage loan. Be sure to include in your discussion, the risks, if any, attributable to each.

2. Explain fully the difference between the primary market and the secondary market.

3. Assume a mortgage loan with an outstanding principal balance of $100,000.00 and an interest rate of 6.0%. The loan is to be repaid over 10 years. The monthly mortgage payment is $500.00 plus accrued interest. What type of amortization plan is this?

Chapter 10-Legal Aspects of Real Estate Finance

4. Explain fully what a promissory note is and detail all parties to a promissory note.

5. What is the importance of being a holder in due course? What are the exceptions to a holder in due course defeating most of a maker’s defenses?

6. Katherine has obtained a loan from ABC Bank. Katherine signed a negotiable note for $100,000 and secured the note by giving ABC Bank a mortgage on her home. The home burns down and Katherine does not have homeowner’s insurance. Without insurance proceeds or other money to pay for the home to be restored, Katherine wants to stop payment on the note. Is Katherine still responsible to ABC Bank for the payment of the note? Explain your answer fully.

7. Define endorsement fully. Explain fully the endorser’s liabilities.

8. What are the types of foreclosures that are available in the State of Maryland?

Chapter 11-Mortgage Forms and Provisions

9. Explain fully the difference between a security agreement and a financing statement. 10. What does a rent assignment in a commercial loan mortgage include? 1