REP_OH.14

REP_OH.14 - CM 426 - REP 14 REAL ESTATE FINANCING:...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CM 426 -- REP 14 REAL ESTATE FINANCING: PRINCIPLES I. MORTGAGE LAW A. MORTGAGE 1. VOLUNTARY LIEN ON REAL PROPERTY 2. BORROWER IS MORTGAGOR 3. LENDER IS MORTGAGEE B. TITLE THEORY STATES 1. MORTGAGOR GIVES LEGAL TITLE TO THE MORTGAGEE OR SOME OTHER INDIVIDUAL 2. MORTGAGOR RETAINS EQUITABLE TITLE 3. LENDER RETURNS TITLE WHEN LOAN IS PAID IN FULL 4. BORROWER HAS RIGHTS OF POSSESSION AND USE 5. MORTGAGEE HAS RIGHT OF IMMEDIATE POSSESSION IF MORTGAGOR DEFAULTS C. LIEN THEORY STATES 1. MORTGAGOR RETAINS LEGAL AND EQUITABLE TITLE 2. MORTGAGEE (LENDER) HAS A LIEN ON PROPERTY AS SECURITY FOR THE DEBT 3. MORTGAGEE MUST GO THROUGH FORECLOSURE PROCEDURES TO OBTAIN LEGAL TITLE D. INTERMEDIATE THEORY 1. PRINCIPLES OF TITLE THEORY ARE INVOKED 2. BUT REQUIRES MORTGAGEE TO FORECLOSE TO OBTAIN LEGAL TITLE E. RIGHTS OF PARTIES IN DIFFERENT STATES ARE MORE TECHNICAL THAN ACTUAL II. MORTGAGE LOAN
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
A. MORTGAGE LOAN CONSISTS OF TWO PARTS -- TWO SEPARATE DOCUMENTS 1. DEBT ITSELF -- THE MORTGAGE OR SECURITY INSTRUMENT CREATES A LIEN ON THE PROPERTY 2. SECURITY FOR THE DEBT -- PROMISSORY NOTE 3. IF BORROWER DEFAULTS ON NOTE, MORTGAGOR MAY SUE FOR FORECLOSE B. HYPOTHECATION -- PLEDGING OF PROPERTY AS SECURITY FOR PAYMENT OF A LOAN WITHOUT SURRENDERING POSSESSION OF THE PROPERTY III. DEEDS OF TRUST (OR TRUST DEEDS) A. TRUSTOR (BORROWER) B. BENEFICIARY (LENDER) IS LEGAL OWNER AND HOLDER
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

REP_OH.14 - CM 426 - REP 14 REAL ESTATE FINANCING:...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online