C. Real Property Mortgages

Question 1

Is mortgage a transfer of title?*

Answer 1

NO

- Mortgage creates lien

Question 2

What is required for assignment of mortgage?*

Answer 2

Note

Question 3

What are Lender’s rights if Borrower defaults?*

Answer 3

Bring legal action vs Note

Bring foreclosure action once execution of judgment has been returned wholly/partly unsatisfied
- Must specify that NO part of property has been levied upon/sold

Bring action for debt
- Must obtain Leave of Court

Question 4

What is required for Lender/Assignee to establish standing to sue against Note?*

Answer 4

1) Ownership of Note
- At time of action commenced

2) Service of statutory residential foreclosure notices on Borrower + Tenant of property
- Explaining detailed significance of action
- Additional notice given at least 90 days before action commences (ONLY for high-cost/subprime/non-traditional home loan)

Question 5

What is required for Borrower’s right to redeem?*

Answer 5

Pay into court;

1) Full amount due
2) Costs of action until foreclosure!!!

NO right to redeem allowed after foreclosure!!!

Question 6

When must Plaintiff move for leave to enter deficiency judgment?*

Answer 6

Within 90 days of delivery of deed to purchaser at sale

Question 7

What is included in deficiency judgment?*

Answer 7

1) Judgment + Interest; and
2) Prior Liens, Encumbrances + Interest

MINUS

GREATER of either;

• Market value (determined by court)
• Foreclosure sale price