Mortg. Flashcards
1) Purchase Money Mortgage
(a) Money used to purchase the property
(b) Always gets priority
Assignment
Mortgage + PN
Mortgage + PN
follow each other
B) Redemption
1) Paying off debt to prevent foreclosure
C) Equitable Rights of Redemption
allows borrowers to reclaim their mortgage by paying the full amount owed on their mortgage before the foreclosure is finalized
1) Time form notice of Sale
2) Never Waived
3) Public Policy
D) Statutory Redemption
1) Period of time AFTER foreclosure sale
E) Lien Theory
1) Bank only has a LIEN
2) Owner holds Title
3) Owner can sell
(a) Owner can do what they want with the property; build pool, remodel bathroom, etc. and not give notice to the Bank, because the bank can only ‘lean’ on them for payment, the bank does not have actual possession
F) Title Theory
1) Bank holds Title
2) Owner only has equitable interest
3) Owner cannot sell
(a) Bank is in charge
G) Joint Tenancy 1) Lien Theory
Mortgage does NOT SEVER
G) Joint Tenancy 2) Title Theory
Mortgage severs into Tenancy in common
H) Assume the Mortgage
1) New Buyer takes over the payment, firstly liable
2) Original owner secondarily liable unless novation
I) Subject to the Mortgage
1) Original owner liable for payment
2) But Bank CAN foreclose on new owner, bur can not come after they for $$
(a) they would have to go after the original owner
J) Deed in Lieu of Foreclosure
1) Sign Deed to bank & skip foreclosure proceedings
K) Mortgages Taken AFTER FORECLOSURE are Wiped Out
1) Must be given notice
L) Mortgages taken BEFORE stay:
1) Buyer takes Subject to
M) Deficiency Judgment
1) Collect the remaining money not recovered by foreclosure sale
N) Junior Interests
1) liens, leases, easements
2) Foreclosure terminates interests junior to the mortgage being foreclosed, but does not affect senior interest
O) Installment Contract
1) No title until all payments made
2) Seller can take back after default
