Essentials of Real Estate Finance

by Sirota, David

• ISBN13: 9780793127689
• ISBN10: 0793127688
• Edition: 9th
• Format: Paperback
• Copyright: 1998-04-01
• Publisher: Dearborn Trade

Summary

User friendly and itneractive, this is the most thorough, practice oriented real estate finance text in print.A working knowledge of finance is a must for the successful licensee.Chapters 1 through 7 explain the concepts and issues of finance encountered with every sale while chapters 8 through 14 focus on the practical application of those concepts.New content ensures that students get the latest information from the world of real estate finance.

Table of Contents

Tables and Figures	vii	(2)
Preface	ix	(4)
Acknowledgments	xi	(1)
About the Author	xii	(1)
Introduction	xiii
Ownership of Property	xiv	(1)
Estates in Realty	xv	(1)
Real Estate Characteristics	xvi	(2)
Summary	xviii
CHAPTER 1 The Nature and Cycle of Real Estate Finance	1	(10)
The Nature of Real Estate Finance	1	(2)
Mortgage Lending Activities	3	(2)
Real Estate Cycles	5	(2)
Changes in Real Estate Finance	7	(1)
Summary	8	(1)
Review Questions	9	(2)
CHAPTER 2 Money and the Monetary System	11	(14)
What Is Money?	11	(1)
The Federal Reserve System (Fed)	12	(5)
The United States Treasury	17	(4)
The Federal Home Loan Bank System (FHLB)	21	(1)
Summary	22	(1)
Review Questions	23	(2)
CHAPTER 3 Other Government Activities in Real Estate Finance	25	(13)
The Nature of Agricultural Lending	26	(1)
The Farm Credit System (FCS)	26	(3)
Housing and Urban Development (HUD)	29	(1)
Other Federal Legislation	30	(4)
State Financing Agencies	34	(1)
Summary	35	(1)
Review Questions	36	(2)
CHAPTER 4 The Secondary Mortgage Market	38	(10)
The Federal National Mortgage Association (FNMA)	39	(3)
The Government National Mortgage Association (GNMA)	42	(1)
The Federal Home Loan Mortgage Corporation (FHLMC)	42	(1)
Other Government Participants	43	(1)
Real Estate Mortgage Investment Conduits (REMICs)	43	(1)
Secondary Market for Junior Financing Loans	44	(1)
Summary	45	(1)
Review Questions	46	(2)
CHAPTER 5 Sources of Funds for Real Estate Finance: Fiduciaries	48	(9)
Commercial Banks	49	(1)
Mutual Savings Banks	50	(1)
Savings Associations/Savings Banks	51	(1)
Life Insurance Companies	52	(1)
Pension and Retirement Programs	53	(1)
Credit Unions	53	(1)
Summary	54	(1)
Review Questions	55	(2)
CHAPTER 6 Sources of Funds for Real Estate Finance: Semifiduciary and Nonfiduciary	57	(13)
Mortgage Brokers and Bankers	58	(2)
Real Estate Trusts	60	(2)
Real Estate Bonds	62	(3)
Endowment Funds	65	(1)
Private Loan Companies	65	(1)
Individuals	66	(1)
Summary	67	(1)
Review Questions	68	(2)
CHAPTER 7 Instruments of Real Estate Finance	70	(36)
Encumbrances and Liens	71	(1)
Interests Secured by a Real Estate Loan	72	(1)
The Note and Deed of Trust (Trust Deed)	73	(1)
Note and Mortgage	74	(17)
Contract for Deed (Land Contract)	91	(3)
Junior Finance Instruments	94	(4)
Special Provisions in Real Estate Finance Instruments	98	(5)
Summary	103	(1)
Review Questions	104	(2)
CHAPTER 8 Conventional Loans	106	(12)
FNMA and FHLMC Conventional Loan Guidelines	107	(1)
Interest Rates	108	(3)
Private Mortgage Insurance (PMI)	111	(2)
Permanent/Temporary (Escrow) Buydown Plan	113	(1)
Borrowers Qualifications	114	(2)
Summary	116	(1)
Review Questions	116	(2)
CHAPTER 9 FHA-Insured Loans	118	(15)
Organization and Requirements	119	(1)
Program Summary	119	(1)
Underwriting Guidelines	120	(3)
FHA Maximum Loan Calculations	123	(2)
Mortgage Payment Qualifications	125	(1)
Other FHA Loans	126	(2)
Direct Endorsement and Coinsurance	128	(1)
Advantages of the FHA	129	(1)
Contributions to Real Estate Finance	129	(1)
Summary	130	(1)
Review Questions	131	(2)
CHAPTER 10 VA-Guaranteed Loans	133	(12)
The United States Department of Veterans Affairs Real Estate Loan Guarantee Program	133	(1)
Program Application	134	(8)
VA Graduated-Payment Mortgage (GPM)	142	(1)
Summary	142	(1)
Review Questions	143	(2)
CHAPTER 11 Processing Real Estate Loans	145	(42)
Part A: Qualification Procedures	146	(25)
Qualifying the Borrower	146	(12)
Qualifying the Collateral	158	(9)
Qualifying the Title	167	(3)
Electronic Loan Processing (Automated Underwriting Systems)	170	(1)
Part B: Closing Procedures	171	(13)
Closing the Loan	171	(10)
Servicing the Loan	181	(1)
Assignment of Loan	181	(3)
Summary	184	(1)
Review Questions	185	(2)
CHAPTER 12 Contemporary Real Estate Finance	187	(28)
Interest	188	(3)
Variations in Payments and Interest Rates	191	(4)
Innovative Payment Plans	195	(6)
Variations in Formats	201	(10)
Summary	211	(2)
Review Questions	213	(2)
CHAPTER 13 Defaults and Foreclosures in Real Estate Finance	215	(19)
Defaults	216	(2)
Adjustments	218	(2)
Foreclosures	220	(8)
Deficiency Judgments	228	(1)
Tax Impacts of Foreclosure	229	(1)
Auctions	230	(1)
Summary	231	(1)
Review Questions	232	(2)
CHAPTER 14 Creative Real Estate Finance	234	(13)
Tax-Free Real Estate Finance	234	(6)
Sale-Leaseback	240	(2)
Seller Refinances Prior to Sale	242	(1)
Trading on Seller's Equity	242	(1)
Equity Participation	242	(1)
Summary	243	(2)
Review Questions	245	(2)
Appendix: Mathematics of Finance	247	(16)
Glossary	263	(18)
Answer Key	281	(2)
Index	283