A future advance is an agreement between a borrower and a lender in which the borrower agrees to take out an additional loan at a later date. The terms of the future advance are typically agreed upon when the original loan is made. The borrower may be required to pay a fee for the right … Read more
Hypothecation is the pledging of property to secure a loan or other obligation. The property pledged may be real estate, a automobile, jewelry, or other personal property. The person who pledges the property is called the hypothecator and the person to whom the property is pledged is called the hypothecatee. What is the limitation period … Read more
A mortgage rate lock float down is an agreement between a borrower and a lender that allows the borrower to lock in a mortgage interest rate for a certain period of time, but also allows the borrower to “float down” to a lower interest rate if rates fall during that period. What does it mean … Read more
A strategic default is when a borrower intentionally stops making payments on their loan, even though they are still able to do so. The borrower may do this because they believe that the value of the property is less than the amount they owe, and they want to force the lender to take a loss. … Read more
