Mortgages: Security Systems

A mortgage is a [..1..] in property given by a [..2..] to a [..3..] to secure a [..4..]

security interest, borrower, lender, loan

If the loan is not repaid, the lender can [..1..] the mortgage, sell the [..2..], and use the proceeds to pay back the [..3..]

foreclose, property, debt

Mortgagor: The [..1..] the person who gets the [..2..]

borrower, loan

Mortgagee: The [..1..] the institution lending the [..2..]

lender, money

A mortgage transaction typically involves two elements the [..1..] (promissory note) and the ..2..

loan, security interest

Promissory Note: A document memorializing the borrower's [..1..] to repay the [..2..]

promise, debt

The mortgagee's recourse is not limited to the […]

land

If the mortgagor [..1..], the mortgagee can sue them for [..2..] based on the [..3..]

defaults, payment, note

Mortgage (Security Interest): The interest in the property that gives the lender the right to sell the [..1..] to pay back the [..2..] if the borrower [..3..]

land, loan, defaults

Statute of Frauds: A law requiring certain [..1..] to be in [..2..] to prevent [..3..]

agreements, writing, fraud

Agreements concerning land, including security agreements like a [..1..], generally must be in [..2..] under the [..3..]

mortgage, writing, Statute of Frauds

A legal mortgage must typically be in […]

writing

If a mortgagor is in [..1..], the mortgagee can sue on the [..2..] (based on the promissory note) or [..3..] on the mortgage

default, debt, foreclose

Under Lien Theory, the mortgagee holds only a [..1..] (a [..2..]) in the property

security interest, lien

Under Lien Theory, the mortgagor retains [..1..] and [..2..] of the property UNTIL [..3..]

legal title, ownership, foreclosure

Under Lien Theory, the mortgagee has no right to [..1..] the property before [..2..]

possess, foreclosure

Lien Theory is the [..1..] among [..2..]

majority view, states

Under Title Theory, [..1..] to the property is held by the [..2..] UNTIL the mortgage is [..3..] or [..4..]

legal title, mortgagee, satisfied, foreclosed

Under Title Theory, the mortgagee is entitled to [..1..] of the property on [..2..] at any time, though typically possession is sought only after [..3..]

possession, demand, default

Title Theory is a [..1..] among [..2..]

minority view, states

Under Intermediate Theory, [..1..] remains with the [..2..] UNTIL [..3..]

legal title, mortgagor, default

Under Intermediate Theory, upon [..1..], [..2..] passes to the [..3..]

default, legal title, mortgagee

Under Intermediate Theory, the mortgagee can demand [..1..] as soon as a [..2..] occurs

possession, default

A mortgagor (borrower) may be able to transfer the […]

mortgage

If a mortgagor transfers the mortgage, the mortgage remains on the [..1..] even after the mortgagor [..2..] it

land, sells

The new buyer's responsibility concerning the mortgage depends on the [..1..] of the [..2..]

terms, transfer

A mortgagee (lender) can transfer the mortgage to another […]

party