Explore the legal terms and concepts related to Security Interests in Real Estate. Click on any term below to learn more about its definition and applications.
Who may transfer their interest in a mortgage?
Both the mortgagee (lender) and the mortgagor (borrower) may transfer their interest in a mortgage,...
In lieu of foreclosure, what do many installment contracts prefer and how do courts address this alternative?
Though installment land contracts often call for forfeiture instead of foreclosure, courts have adop...
What is the distribution order of proceeds from a foreclosure?
Proceeds are applied in the following order: The Amazing Furry Juggling Man 1. Attorney's fees and...
What are the limitations of a junior interest?
At a foreclosure sale, junior interest holders and the debtor are necessary parties and must be join...
What results from a party purchasing a foreclosed property subject to a senior interest?
A buyer at a foreclosure sale takes subject to a senior interest, but is not personally liable on th...
How is a mortgage's priority determined?
Generally, a mortgage's priority is determined by the time it was placed on the property.
What is a statutory redemption?
Half the states will allow a mortgagor to redeem the property during a fixed period after the forecl...
What is a redemption in equity?
A mortgagor may redeem their property by paying the full amount due at any time before the foreclosu...
What is a foreclosure?
Foreclosure is the process in which a property is sold to satisfy a debt in whole or in part.
What is a receivership?
In cases where a mortgagee attempts to intercept rents before foreclosure, a court will appoint rece...
What occurs in title theory states?
In title theory states, the mortgagee holds legal title until the mortgage has been satisfied or for...
What occurs in lien theory states?
In lien theory states, the mortgagee is considered the holder of a security interest only. They may...
Under which theories may a mortgagee take possession of a property and begin receiving rents before foreclosure?
A mortgagee may take possession of a property and begin receiving rents before foreclosure in title...
What is a due on sales clause?
A due on sales clause allows the lender to demand full payment of the loan if the mortgagor transfer...
What is the result of a grantee assuming the mortgage?
Where a grantee assumes the mortgage, they become primarily liable, while the original mortgagor rem...
What liabilities are associated with a mortgaged property that is transferred to another party?
A grantee of the mortgaged property takes subject to the mortgage. The grantee, however, does not as...
How may a party be a holder in due course of a note?
To be a holder in due course of the note, the following must be met: (1) note must be negotiable; (2...
How do states treat a note without a mortgage?
A note can be transferred without the mortgage, but the mortgage will automatically follow the note...
How do states treat a mortgage without a note?
In some states, the transfer of a mortgage automatically passes the note (unless expressed otherwise...
What security interests exist under a sale-leaseback?
Some landowners opt to sell their property for cash and then immediately lease it back for a long pe...
What security interests exist under a absolute deed?
An absolute deed given for security purposes can be treated by the court as an equitable mortgage, w...
What security interests exist under a installment land contract?
An installment purchaser only gets legal title after the full price has been paid. Forfeiture clause...
What security interests exist under a deed of trust?
The debtor is the trustor, who gives a deed of trust to a third-party trustee connected to the lende...
What security interests exist under a mortgage?
The debtor is the mortgagor, the lender is the mortgagee. On default, the lender can have a judicial...
What is an installment land contracts?
An installment contract is an agreement between a real estate seller and buyer, under which the buye...
What are the 5 types of security interests in real estate?
"King MIDAS" The 5 types of security interests in real estate are: 1. Mortgages 2. Iinstallment La...
What occurs in intermediate theory states?
In intermediate theory states, the mortgagor holds legal title until default, but upon default legal...
What interests does a foreclosure destroy?
A foreclosure does not destroy any interests senior to the interest foreclosed, but generally destro...
What is a deficiency judgment?
If the proceeds from a foreclosure sale are insufficient to satisfy the mortgage debt, the mortgagee...
What are the benefits of the holder in due course status?
A holder in due course is not burdened by any personal defenses of the maker (lack of consideration,...
What are the methods of transferring a note?
A note may be transferred either by (1) indorsement and delivery (transferee becomes holder in due c...
