Mortgages

Question 1

The mortgagor is the [debtor/creditor] while the mortgagee is the [debtor/creditor].

Answer 1

Debtor (mortgagor)

Creditor (mortgagee)

Question 2

Purchase-money mortgage is the ____’s security interest in the property that the loan enables the debtor to acquire

Answer 2

Lender

Question 3

A non-purchase-money mortgage is where the bank has a security interest in _____.

Answer 3

Something other than what the loan is helping finance

Question 4

Mortgage is a combination of two things:

Answer 4

A debt and a lien in land to secure the debt.

Must be in writing

Question 5

Things that the bar examiners could call mortgages on the exam:

Answer 5

Mortgage deed
Deed of trust
Sale leaseback
Security interest in land

Question 6

Recording statutes protect _____. If recorded, the mortgage _____.

Answer 6

Mortgagees (banks)

Sticks with the land

Question 7

Recording statutes do not apply to mortgages, only deeds. T/F

Answer 7

False. They apply to mortgages as well

Question 8

“Assume the mortgage” = both O and A are personally liable.

“Subject to the mortgage” = only ____ is liable.

Answer 8

O

Question 9

When debtor-mortgagor defaults on the loan, the mortgagee brings a deficiency action against them, which must be executed by _____.

Answer 9

Proper judicial proceeding

Question 10

Where there is a surplus, junior liens are paid off in order of:

Answer 10

Priority. Remaining surplus goes to debtor

Question 11

Equitable redemption allows:

Answer 11

A debtor to redeem the land by freeing it of the mortgage before a foreclosure sale.