Security Interests

Question 1

Mortgage

Answer 1

conveyance of lien in land in order to repay debt

mortgage is union of debt and represented in a writing and a voluntary transfer of a lien in teh debt to collateralize the mortgage

stays with the land so long as properly recorded

Question 2

types of mortgages

Answer 2

purchase money mortgage - lien on the land for the purcahse of land

non purchase money mortgage - mortgage in your home not related to what it finances

Question 3

theories on mortage

Answer 3

lien theory - mortgagee hols a security interest only

title theory - mortgagee holds title until mortgage is satisfied

intermediate theory - mortgagee holds title only after default

Question 4

foreclosure

Answer 4

if proceeds are less than ability to pay mortgage, then you go for a deficiency judgment

if surplus, then junior lienholders are paid off in order of priority with debtor last

Question 5

waterfall

Answer 5

1) attorneys fees and foreclosure expenses
2) accrued interest on the senior most mortgage
3) then in order of priority (senior most ared entitled to demand payment in full before any junior lienholder can get anything)
4) deficiency creditors can take a deficient claim to recover

Question 6

if a party is not joined

Answer 6

their claim is preserved.

Question 7

wht if a junior lienholder forecloses

Answer 7

the senior is still outstanding and you take subject to that lien

Question 8

other types of security interests

Answer 8

deed of rtut - simlar to mortgage bu thrid party trustee forecloses

installment land contract - seller retains deed until buyer pays in full

absolute deed - equitable mortgage when given for debt

sale leaseback - could be determined as disguised mortgage

Question 9

priority

Answer 9

think UCC

Question 10

floating lien

Answer 10

after acquired collateral.