Mortgages

Question 1

Mortgage requiremenrs

Answer 1

1)writing
2)signed (party to be charged)
3)reasonable identifies parties and the land

Question 2

Purchase money mortgage

Answer 2

Used by buyer to purchase real property
Seller is the lender who secures mortgage on property
-holder has priority over all other junior and senior mortgages

Question 3

Redemption

Answer 3

Paying debt to stop foreclosure

Question 4

Equitable right of redemption

Answer 4

Time from foreclosure notice to sale person can pay debt to bank and bank must take

Question 5

Statutory redemption

Answer 5

After foreclosure sale to when statute says (not entitled to it, but may get it by statute

Question 6

Can you ever waive equitable redemption?

Answer 6

Cannot waive equitable rt of redemption (even if in terms)

Question 7

Effect of foreclosure on mortgages

Answer 7

Destroys all junior mortgages

Question 8

Lien theory jurisdiction

Answer 8

Bank has lien, buyer has title
(Bank has no legal rt in home)

Question 9

Title Theory

Answer 9

bank keeps title (owns the property) buyer has equitable interest to live there

buyer cannot sell without bank’s permisiion

Question 10

What happens to a JT in a title theory jx when JT get a mortgage?

Answer 10

Banks gets title so JT is severed and becomes a T in C

Question 11

What happens to a JT in a lien theory jx when JT get a mortgage?

Answer 11

no change in JT with mortgage becuase the tenants haved the title

Question 12

Assumption of Mortgage

Answer 12

express or implied
If buyer assumes the mortgage, he is primarily and personally liable on the mortgage payments
seller remais seoncdarily liable

Question 13

Express Mortgage Assumption

Answer 13

occurs if there is an express agmt for grtantee to
1) take the real property AND
2) continue making payments

Question 14

Implied Mortgage Assumption

Answer 14

1) no express agmt exists
2) granee pays seller only the equity in home
3) grantee continues to make payments to the lender onteh balance of the mortgage

Question 15

Transfer Subject to the Mortgage

Answer 15

if a buyer takes real propery subjec to the mortgage, he is NOT personally liable
BUT a duly recorded mortgage remains on the land, and mortgage lender may foreclose on the mortgage

IOW buyer owes no money but bank can still foreclose

Question 16

Deed in lieu of foreclosure

Answer 16

give deed to bank instead of going through foreclosure proceedings

Question 17

Foreclosure effect on mortgages

Answer 17

destroys all junior mortgages (as long as junior mortgages had notice to join suit)
-all senior mortgages are not affected (buyer takes property subject to existing mortgages)

Question 18

Deficiency Judgement

Answer 18

mortgagee may seek def judgement against the debtor if the proceeds are insufficient to satisfy mortgage debt

Question 19

Installment land Contracts

Answer 19

buyer only gets title when pays off the entire mortgage
-seller can come take house if no payment made
-seller does not need to give marketable title until all payments are made