Delivery of Deeds -2 Flashcards
The mortgagee’s role on foreclosure is that of a ________. The mortgagee has a duty to exert every reasonable effort to obtain a fair price. The Court further holds that the measure of damages where due diligence is lacking is the difference between the sale price and a “fair” price (not fair market value). The Court remands for a reassessment of damages.
fiduciary
The Court seeks to ensure that, in the context of foreclosure, the mortgagee neither acts in _______ ________ nor fails in exercising due diligence with respect to protecting and preserving the mortgagor’s equity in the foreclosed property.
bad faith
All jurisdictions adhere to the rule that mere inadequacy of the foreclosure ______ ______will not invalidate a sale, absent fraud, unfairness, or other irregularity.
sale price
Just because you got less money than you wanted you can’t assume that it will invalidate the foreclosure sale because it won’t unless you’ve got fraud, unfairness, or other irregularities. True or False.
True
What is the difference between purchasing land “subject to the mortgage” versus purchasing land and “assuming the mortgage?”
assuming the mortgage you are actually paying the bank (lender).
subject to the mortgage you are paying someone else.
Which one are you actually directly paying the lender?
Assuming the mortgage - actually paying the bank
Which one can you lose the property if you don’t pay through foreclosure?
Both. Assuming the mortgage and subject to the mortgage
Scarier with ________ _____ ____ _________ because you are paying someone else and you hope that they are paying the bank and when you get foreclosed upon it is more frustrating because you paid but you didn’t pay the bank.
subject to the mortgage
If I sell my house right now, somebody might want to assume my mortgage so they would have the benefit of the ________ _______.
interest rate
If a life estate holder fails to keep _________ in ________, ______ ________ _______, or pay interest on the mortgage, the life tenant has committed permissive waste. The life tenant is too obligated to pay down the principal.
property
repair
pay property taxes
____________ __________ __________, those used to purchase the land, automatically have priority over non-purchase money mortgages- examples of a non-purchase money mortgage.
purchase money mortgages
In 3 years, my daughter will go to college, state school in Florida, I did not prepay room, board, or books. If she ends up in Miami, I will have to take out a mortgage to pay for her rent in Miami. That would not be a ________ ________ __________ that would be a __________ ________ _________ that I have taken out after the fact.
purchase money mortgage
non-purchase money mortgage
Sometimes you do remodeling – addition on the house. I might have to build an addition if I invite family to come live with me so I might have to take out a ___________ _________ ________ to pay for the addition.
non-purchase money mortgage
If I default on my mortgage the _______ money mortgage would have priority over the ______________ money mortgage.
purchase money mortgage
non-purchase money mortgage
A _________ _________ __________ executed at the same time as the purchase of the real property encumbered takes precedence over any other claim or lien, including a previously filed judgment lien.
purchase money mortgage