Mortgages and Security Interests Flashcards
When is the transferee of mortgaged property liable for the mortgage obligation?
A transferee of mortgaged property may take possession of the property subject to the mortgage without assuming personal liability for the mortgage obligation. However, a transferee of mortgaged property who assumes the mortgage obligation is personally liable to the mortgagor.
When will a mortgage in a notice jurisdiction take priority over a judgment lien that that was first in time but also not recorded?
In a jurisdiction has adopted a notice recording act client, by recording its judgment, would generally be protected against future lenders. Although the lien was recorded before the mortgage, the mortgage would have priority in a foreclosure sale because it is a purchase money mortgage. Purchase money mortgages, mortgages used to finance the purchase of the property, have priority over all earlier non-purchase-money mortgages and liens whether or not recorded.
Is an unrecorded judgment lien protected in a notice statute jurisdiction if they were first in time if the holder of a subsequent property had no notice?
Although the judgment lien was first in time, it would be protected by the recording act in question only if the lien was recorded or the holder of a subsequent property interest otherwise has notice of the lien.
Does the senior mortgage take priority over the junior mortgage if they give a second loan subsequent to the junior loan?
Generally, the money from a foreclosure sale is applied first to the costs associated with the sale, second to the mortgage obligation being foreclosed, and finally to the mortgage obligations owed to all junior interest holders. However, a senior mortgagee who enters into an agreement with the mortgagor to modify the mortgage or the obligation it secures subordinates his interest to a junior mortgagee’s interest to the extent that the modification is materially prejudicial to the junior mortgagee’s interest. The senior mortgagee’s interest otherwise remains superior to the junior mortgagee’s interest.
Can the grantor of an easement enjoin a grantee from using an easement if their will be a future increase in the use?
The future increase in the use of an easement, such as through increased traffic, may be permitted if the increase is reasonable, absent a provision for the easement to apply to future acquired property, an increase in the scope of an easement caused by use generated for the benefit of property other than the dominant estate is not permitted.
