1What is a lien?
2What is a mortgage?
3In the context of mortgages, what is a note?
4What is the relationship between a note and a mortgage?
5In a mortgage relationship, who are the mortgagor and the mortgagee?
6What is a default?
7What is foreclosure?
8What does it mean for a mortgage to have priority over other mortgages?
9What is a deed of trust, when used as a method of financing real property?
10In modern property law, are deeds of trust generally treated as mortgages for purposes of foreclosure protections?
11What is a power-of-sale clause in a mortgage or other security arrangement?
12What is an equitable mortgage?
13What are the major factors that a court will consider in determining whether a given transaction ought to be treated as an equitable mortgage?
14A teacher owned a property in fee simple absolute. The teacher needed $10,000 but did not have the money. The teacher called his friend and offered...
15In the law of real property, what is a sale-leaseback arrangement?
16A buyer purchased a property from a seller. The buyer’s friend loaned him the money for the purchase. Instead of conveying a mortgage as a security...
17What is a purchase-money mortgage?
18In foreclosure, do holders of purchase-money mortgages have priority over other lien holders whose liens attach to the property through the mortgagor?
19What is a future-advance mortgage?
20What is the priority rule for future-advance mortgages?
21What is an installment land contract?
22At common law, under a land installment contract, what remedies could the seller pursue if the buyer defaulted on the payments?
23Under modern property law, do buyers under installment land contracts generally receive foreclosure protections similar to those available to mortg...
24Under modern property law, if the buyer defaults on an installment land contract, do some states place restrictions on the seller’s ability to reta...
25What is an absolute conveyance?
26May a property owner mortgage the property to secure someone else’s debt?
27May one piece of land be encumbered by more than one mortgage?
28In legal terms, what happens to a mortgage if the underlying debt is paid?
29Is it possible to remove a mortgage from a piece of land while the underlying debt remains in effect?
30An engineer loaned $50,000 to a doctor without initially seeking security on the debt. The doctor had recently missed a few payments on the loan. T...
31What is the lien theory of mortgages?
32What is the title theory of mortgages?
33What is the intermediate theory of mortgages?
34What are the three main theories of mortgages?
35A landowner’s title was subject to a mortgage that secured a $200,000 loan. When the mortgage was conveyed, it vested legal title to the landowner’...
36In general, if a mortgagor ceases to make payments and abandons the property, may the mortgagee take possession of the mortgaged property before fo...
37What three risks does a mortgagee face if the mortgagee takes possession of property subject to a mortgage held by the mortgagee before the foreclo...
38An architect was the rightful owner of a property. A bank held a note obliging the architect to pay the bank $300,000, which was secured by a mortg...
39A landowner gave a friend a purchase-money mortgage to secure a loan enabling the landowner to buy a property. After a few years, the landowner sto...
40What is the equity of redemption?
41What is an acceleration clause in a mortgage?
42Under an equity of redemption, what amount must the mortgagor pay to redeem the property, absent an acceleration clause?
43If a mortgagee exercises its rights under an acceleration clause, what amount must the mortgagor pay to redeem the property in equity?
44May an equity of redemption be exercised after the foreclosure sale is complete?
45What is the prohibition against clogging the equity of redemption?
46Who else besides the mortgagor may exercise an equity of redemption?
47Two years ago, a doctor bought a property with the help of a bank, which extended a purchase-money mortgage to the doctor. The note associated with...
48In general, may a mortgagor sell or otherwise transfer the mortgaged property?
49What does it mean for a buyer to take property subject to an existing mortgage?
50In general, must a buyer of mortgaged property have notice of the mortgage in order to take subject to the mortgage?
51What does it mean for a buyer to assume an existing mortgage?
52If a buyer takes property subject to a preexisting mortgage, does the buyer automatically assume the underlying debt?
53An accountant owned a property that was valued at $200,000, though it was subject to a mortgage held by a bank, securing a $150,000 loan. The accou...
54If a buyer of property takes subject to a mortgage but does not assume the mortgage debt, what is the buyer’s liability on the note?
55If a buyer of property takes subject to a mortgage but does not assume the mortgage debt, what is the original debtor’s liability on the note?
56If a buyer of property assumes a mortgage debt as part of the sale, what are the buyer’s liabilities on the note?
57If a buyer of property assumes a mortgage debt as part of the sale, what are the original debtor’s liabilities on the note?
58A baker owned a property valued at $800,000, though it was subject to a mortgage securing a $500,000 loan held by a bank. The baker decided to sell...
59What is subrogation?
60In general, will a secondary obligor who pays a mortgage debt be entitled to subrogation?
61In general, will a joint obligor be entitled to subrogation if he pays more than his share of a joint mortgage debt?
62Why does subrogation typically require the payor to satisfy the entire mortgage debt, instead of some part of the debt?
63In general, may a payor obtain subrogation if the payor pays off the debt gratuitously, instead of doing so to protect his own interests?
64If a payor fails to satisfy the general requirements for subrogation, what are the two methods by which the payor may nevertheless obtain subrogation?
65A landowner had a mortgage on a property in which she held a life estate. The landowner’s son was the remainderman and had an interest inferior to ...
66If a mortgagor sells a property in violation of a provision in the mortgage documents expressly prohibiting the mortgagor from selling the property...
67What is a due-on-sale clause in mortgage documents?
68In general, are a mortgagee’s rights under the note and the mortgage assignable?
69In most states, if a mortgagee assigns a note, is the mortgage automatically assigned with it?
70In most states, may a mortgagee assign the mortgage without the corresponding note?
71If a mortgage note is payable in installments, does the debtor have a common-law right to pay off the note early?
72In relation to mortgages, what is a prepayment penalty?
73In terms of residential mortgages, what seven requirements must be met for a prepayment penalty to be permissible on a newly issued mortgage?
74What is a deed in lieu of foreclosure?
75May mortgage and note documents require the mortgagor to promise to resolve a default by assigning the property to the mortgagee through a deed in ...
76What is foreclosure?
77What are the three main types of foreclosure?
78What is strict foreclosure?
79What is foreclosure under power of sale?
80Do states often impose procedural requirements on power-of-sale foreclosures to protect mortgagors?
81What is foreclosure by judicial sale?
82A landowner owned a property that was encumbered by a purchase-money mortgage held by a bank. The landowner began to run significantly behind on he...
83In lieu of foreclosure, are the parties free to renegotiate the underlying debt?
84What is an acceleration clause in a mortgage?
85A landowner borrowed money from a bank to buy a property. The purchase-money mortgage was for $100,000. The bank forgot to include an acceleration ...
86What is the first-in-time rule for determining the priority of mortgages and other liens upon foreclosure?
87May a senior mortgagee agree to give up its priority in favor of a junior mortgage?
88If a mortgagor takes out one mortgage to pay off another mortgage, what priority will the new mortgage have?
89What are the effects of a foreclosure on a junior interest holder?
90Is an interest senior to a foreclosing mortgage legally affected by the foreclosure proceedings?
91In general, what interests does a foreclosure buyer obtain in the property and in the mortgage that is being foreclosed?
92A buyer wanted to purchase a property from its owner for $400,000. Not having sufficient funds, the buyer turned to a bank, which extended $250,000...
93In general, if the proceeds of foreclosure are inadequate to satisfy all the outstanding debt secured by the foreclosing mortgage, may the mortgage...
94How will the proceeds of a foreclosure sale be applied in terms of priority?
95In the context of mortgages, what is a statutory right of redemption?
96To exercise the statutory right of redemption, must the mortgagor generally pay the amount of the outstanding debt?
97To whom must the mortgagor pay the foreclosure sale price to exercise the statutory right of redemption?
98A landowner bought a property with the assistance of a bank, which extended a loan to the landowner. The property was located in a state that provi...