Mortgages

Question 1

Purchase Money Mortgage- PMM

Answer 1

The mortgage/loan that you used to buy the property

o PMM always gets priority, it always gets paid back first.

Question 2

Redemption

Answer 2

To redeem the property, trying to get the property back

o You stop the foreclosure by redeeming the property: Paying off the debt.

Question 3

Two types of Redemption

Answer 3

Equitable and Statutory

Question 4

Equitable Redemption

Answer 4

Period of time from the notice of foreclosure until the foreclosure sale.

 The person who owes the money has this time to go get the money and give it to the bank and the bank must accept it.

This may never be waived

Question 5

Statutory redemption

Answer 5

The period of time after the foreclosure sale until when ever.

 You dont auto get statutory redemption

 Additional period of time you may have by statue to get the money and get the property back

Question 6

Lien Theory

Answer 6

Bank only has a lien, Owner holds title, Owner can sell

Question 7

Title Theory

Answer 7

Bank holds title, Owner has equitable interest, Owner cannot sell

Question 8

Lein vs. Title Theory- ( Joint Tenancy)

Answer 8

Lien theory
Mortgage does not sever

Title Theory
Mortgage severs into tenancy in common

Question 9

Assuming the mortgage

Answer 9

New buyer takes over payments, original owner secondarily liable unless novation.

Question 10

Taking subject to the mortgage

Answer 10

Means ur not agreeing to pay anything and what ever bal is still owed the orig guy is still on the hook for.

AKA: Owner liable for payment, but bank can foreclose on new owner

Question 11

Deed in leu of foreclosure

Answer 11

im going to give the deed to the bank right now and give up my rights to the house in leu of this foreclosure proceeding.

Question 12

What happens to multiple mortgages on the property when it is foreclosed?

Answer 12

Any mortgage that was jr (after) my mortgage, will be wiped out as long as there was notice given to other ppl and they joined the suit

o Any loans that were taken out before this particular foreclosure stays and the buyer would be taking subject to those mortgages, old guys till responsible for first other loans.

Question 13

Deficiency Judgment:

Answer 13

Collect the remaining money not recovered by foreclosure.

Question 14

Installment land sale contract

Answer 14

-Monthly payments

-only get title to property when I pay off all the 200k.

-Seller does not have to give marketable title until the last payment.