Mortgages Flashcards
1
Q
What is a mortgage?
A
a contract between a** mortgagor **(person taking the money) and the mortgagee(person lending the money)
2
Q
Promises of a mortagor?
A
- Pay back the principal + interest at an agreed upon time interval
- Pay back all land taxes
- Fully and properly look issue their property
- Properly look after the land
3
Q
Promises of a Mortgagee?
A
- Promise to pay the mortgagor the money at the determined time
- Promise to discharge the mortgage when fully paid
- Promise to give the mortgagor quiet use and enjoyment at the determined time
4
Q
Second mortage
A
a contract, very similar to the first mortgage
5
Q
Remedies for default on a mortage:
A
- Sue for breach of Contract
- Foreclosure
- Judicial Court Ordered Sale
6
Q
Process of foreclosure
A
- order NISI
- wait 6 months
- Mortgagee goes back to court and asks for Order absolute
7
Q
Why do financial institutions want judicial court ordered sale?
A
- They don’t want to be in the home-owner industry
- Not much time is needed
- Can file a lawsuit for the remaining money owed
