Mortgages Flashcards
Mortgage requiremenrs
1)writing
2)signed (party to be charged)
3)reasonable identifies parties and the land
Purchase money mortgage
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
Redemption
Paying debt to stop foreclosure
Equitable right of redemption
Time from foreclosure notice to sale person can pay debt to bank and bank must take
Statutory redemption
After foreclosure sale to when statute says (not entitled to it, but may get it by statute
Can you ever waive equitable redemption?
Cannot waive equitable rt of redemption (even if in terms)
Effect of foreclosure on mortgages
Destroys all junior mortgages
Lien theory jurisdiction
Bank has lien, buyer has title
(Bank has no legal rt in home)
Title Theory
bank keeps title (owns the property) buyer has equitable interest to live there
buyer cannot sell without bank’s permisiion
What happens to a JT in a title theory jx when JT get a mortgage?
Banks gets title so JT is severed and becomes a T in C
What happens to a JT in a lien theory jx when JT get a mortgage?
no change in JT with mortgage becuase the tenants haved the title
Assumption of Mortgage
express or implied
If buyer assumes the mortgage, he is primarily and personally liable on the mortgage payments
seller remais seoncdarily liable
Express Mortgage Assumption
occurs if there is an express agmt for grtantee to
1) take the real property AND
2) continue making payments
Implied Mortgage Assumption
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
Transfer Subject to the Mortgage
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
Deed in lieu of foreclosure
give deed to bank instead of going through foreclosure proceedings
Foreclosure effect on mortgages
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)
Deficiency Judgement
mortgagee may seek def judgement against the debtor if the proceeds are insufficient to satisfy mortgage debt
Installment land Contracts
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
