Loan Terms

Failure of the borrower to honor one or more of terms in the loan documents is considered a default and can cause the loan to become immediately due and payable.

Agreement under which a borrower (the trustor) conveys the right of ownership of his/her property to a trustee as a security for a loan from a lender (the beneficiary of the trust). If the loan is paid back as agreed, the trustee re-conveys the title to the trustor, i.e releases the deed of trust. If not, the trustee has the legal power to sell (liquidate) the property at a public sale to repay the lender.

The asset(s) pledged by a borrower to secure repayment of a debt.  In my case, real estate is the only acceptable collateral.

Borrowing more than the amount necessary to pay off the remaining balance of an existing note is referred to as a cash-out refinance.  The borrower leaves the closing table with cash.  I will entertain making this type of loan.

A bridge loan is short-term financing that “bridges” the gap between the time you purchase a property and arrange for permanent financing or sell.  Private loans or hard money loans are often referred to as bridge loans.

This is a fee charged by some lenders when the loan is re-paid, sometimes referred to as an exit fee. If applicable, it is generally a percentage of the loan amount.