FIN 420 DPU Real Estate & Finance Investments Real & Personal Property Worksheet

User Generated

Zrfuny77

Economics

FIN 420

DePaul University

FIN

Description

Hey there,

I need help answering questions regarding the introduction to real estate finance and investments. Please upload the attached worksheets With answers.

Unformatted Attachment Preview

FIN 420 – Real Estate Finance & Investments Notes and Mortgages Please complete the following questions (placing your responses after the assigned question) and post online by the assigned deadline. Questions 1. Distinguish between a mortgage and a note. 2. What does default mean? Does it occur only when borrowers fail to make scheduled loan payments? 3. What is meant by mortgage foreclosure, and what alternatives are there to such action? 4. Can borrowers pay off part, or all, of loans any time that they desire? 5. What is meant by a “purchase-money” mortgage loan? When could a loan not be a purchasemoney mortgage loan? 6. What does a deficiency judgment mean? 7. Explain the difference between a buyer assuming the mortgage and a buyer taking title subject to the mortgage. 8. What is a deficiency judgment and how is its value to a lender affected by the Bankruptcy Code? Problems 1. Mr. Smith acquired a property consisting of one acre of land and a two-story building five years ago for $100,000. He also obtained an $80,000 mortgage loan from ACE Bank to provide financing to complete the purchase. This year, Mr. Smith constructed another building on the property with his own funds at a cost of $20,000. Mr. Smith has decided after completing the building to approach Duce Bank to borrow and mortgage the new building with a $16,000 loan. Is Duce Bank likely to provide the $16,000 in financing? What other options may Mr. Smith have to consider? 1. FIN 420 – Real Estate Finance & Investments Introduction Please complete the following questions (placing your responses after the assigned question) and post online by the assigned deadline. 1. What is the difference between real property and personal property? 2. What is meant by an estate? 3. What is an abstract of title? 4. Name the three general methods of title assurance and briefly describe each. Which would you recommend to a friend purchasing a home? Why?
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached. Please let me know if you have any questions or need revisions.

Running head: REAL ESTATE FINANCE & INVESTMENTS

Real Estate Finance & Investments
Student’s Affiliation
Course

1

REAL ESTATE FINANCE & INVESTMENTS

2

FIN 420 – Real Estate Finance & Investments
Notes and Mortgages
Please complete the following questions (placing your responses after the assigned question) and
post online by the assigned deadline.
Questions
1. Distinguish between a mortgage and a note.
A mortgage is a deed that a person signs with a lender by promising a property against
the borrowed money. A note is a document that a person signs when pledging to pay a
lender or another person the amount borrowed. It also has details about the specified
interest for the borrowed money and time and mode of payment. In short, a note
generally discloses the debt and ensures the lender is responsible for the debt while a
mortgage is ordinarily a distinct manuscript that promises a selected property as debt
security (Brueggeman & Fisher, 2019).
2. What does default mean? Does it occur only when borrowers fail to make scheduled
loan payments?
A default occurs when a debtor fails to repay a planned loan. Secondly, when the lender
violates a provision in the mortgage or note. No default means the lender failed to make
scheduled loan payments and happened when the lender violated particular provisions in
the mortgage or note reg...


Anonymous
I was struggling with this subject, and this helped me a ton!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags