Mortgages

Question 1

Mortgage

Equitable Mortgage

Answer 1

Security interest + debt

Absolute deed + sep promise of reconveyance (parol E ok)

Question 2

Transfer of Mortgage

Answer 2

Follows creditor’s note

Follows property, but grantee not personally liable for deficiency absent express assumption (original debtor always liable as surety)

Question 3

Foreclosure

Answer 3

Judicial sale + $ to debt + action for any deficiency

• Equitable Right of Redemption: all due up until sale (can’t waive in mortgage, can later w separate consid)
• Statutory Right of Redemption: pay foreclosure price until fixed time after sale
• Defenses: (I) Dodd frank - creditor didn’t look at repayment ability, (ii) pending loan mod request (must good faith consider), (iii) give Deed in lieu of foreclosure

Question 4

Priority

Answer 4

1st in time (PMM over prior)

Senior change = change loses seniority

Foreclosure eliminates jr. int if property joined

Right to possess until foreclosure in maj Lien Jx, upon default in min title jx