Class 18: Foreclosure-Acceleration & Foreclosure-Assignment of Rents - Mar. 20

Question 1

What happened in Vonk v. Dunn (1989)? (Q)

Answer 1

A foreclosure proceeding is oppressive and unconscionable if a mortgagee initiates the foreclosure pursuant to an acceleration provision without considering the equitable circumstances surrounding the default that triggered the acceleration.

Question 2

What is an acceleration clause? (Emanuel)

Answer 2

Acceleration makes the principal balance, together with all accrued interest, immediately due and payable.(197)

Question 3

What happened in New York & Suburban Federal Savings & Loan Association v. Sanderman (1978)? (Q)

Answer 3

A mortgagee in possession is held to the standard of a reasonable owner when discharging its duty to protect the property.

Question 4

What is a receiver? (Emanuel)

Answer 4

A receiver takes possession of mortgaged property following default at the instance of the lender. (153)