Mortgages Flashcards
Purchase Money Mortgage- PMM
The mortgage/loan that you used to buy the property
o PMM always gets priority, it always gets paid back first.
Redemption
To redeem the property, trying to get the property back
o You stop the foreclosure by redeeming the property: Paying off the debt.
Two types of Redemption
Equitable and Statutory
Equitable Redemption
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
Statutory redemption
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
Lien Theory
Bank only has a lien, Owner holds title, Owner can sell
Title Theory
Bank holds title, Owner has equitable interest, Owner cannot sell
Lein vs. Title Theory- ( Joint Tenancy)
Lien theory
Mortgage does not sever
Title Theory
Mortgage severs into tenancy in common
Assuming the mortgage
New buyer takes over payments, original owner secondarily liable unless novation.
Taking subject to the mortgage
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
Deed in leu of foreclosure
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.
What happens to multiple mortgages on the property when it is foreclosed?
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.
Deficiency Judgment:
Collect the remaining money not recovered by foreclosure.
Installment land sale contract
-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.