feb 26 - 2/26 Minimum requirements for a valid mortgage 1....

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2/26 Minimum requirements for a valid mortgage 1. Proper identification of parties to the contract a. Names of lender and borrower b. Meeting of the minds c. Both must have contractual capacity 2. Mortgage must be in writing 3. The interest in property being mortgaged must be specified a. What type of estate- fee simple, determinable fee, etc. 4. Legal Objective 5. Must have a statement of valuable consideration 6. Reference to a promissory note a. No note, then no mortgage 7. Must convey granting language a. What type of interest is being conveyed i. Lien or title to the lender 8. Legal description a. Address not enough 9. Covenants/contractual agreements 10. Signature of the mortgagor 11. Signature must be acknowledged (TX) a. Notary 12. Mortgage must be delivered to the lender and recorded 13. Recording tax- TX Common provisions contained in mortgage documentation 1. Acceleration clause a. Allows lender to demand full payment of loan in event of borrower default b. Lender can only foreclose on payments in default, need a foreclosure
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feb 26 - 2/26 Minimum requirements for a valid mortgage 1....

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