Mortgages

Promissory note

The contract "I will pay".

Mortgage

"The house is collateral securing the loan".

Judicial foreclosure

Court does the sale

Power of sale foreclosure

Mortgagee/lender does the sale

Securitization

Selling the loan to a trust, who issues securities backed by the loans and trades them.

Murphy

Plaintiffs house foreclosed, sue lenders for failure to exercise good faith in getting fair price. Lenders bought at their own auction, then resold hours later for more money. Sellers acted in bad faith. A mortgagee must exert due diligence and every reasonable effort to obtain a fair and reasonable price in a foreclosure sale.

McGlawn

Commission finds mortgage broker predatory. Sues. Broker was predatory. Predatory lending is found when: loans have unreasonably high interest rates and fees, lenders targeting vulnerable populations.