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13 Cards in this Set

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MORTGAGE: Conveyance of real property to a CREDITOR (__________) w/ a REVERSION to a DEBTOR (___________) upon satisfaction of the obligation secured by the mortgage.
MORTGAGE: Conveyance of real property to a CREDITOR (MORTGAGEE) w/ a REVERSION to a DEBTOR (MORTGAGOR) upon satisfaction of the obligation secured by the mortgage.
Conveyance of real property to a creditor w/ a reversion to the debtor upon satisfaction of the obligation secured by the mortgage.
MORTGAGE: Conveyance of real property to a creditor w/ a reversion to the debtor upon satisfaction of the obligation secured by the mortgage.
THEORIES OF MORTGAGES - TITLE THEORY

Legal title passes to the _________ (__________).

When debt is paid, title reverts to the ________, who has the beneficial interest.

* NOT followed in VA
THEORIES OF MORTGAGES - TITLE THEORY

Legal title passes to the MORTGAGEE (CREDITOR).

When debt is paid, title reverts to the MORTGAGOR, who has the beneficial interest.

* NOT followed in VA
THEORIES OF MORTGAGES - LIEN THEORY

Legal title stays w/ the _________ even though the mortgage deed purports to convey title to the _________.

The MORTGAGEE receives a ______ entitling him to foreclose upon default.

NOTE: VA follows this rule!
THEORIES OF MORTGAGES - LIEN THEORY

Legal title stays w/ the MORTGAGOR even though the mortgage deed purports to convey title to the MORTGAGEE.

The MORTGAGEE receives a LIEN entitling him to foreclose upon default.

NOTE: VA follows this rule!
THEORIES OF MORTGAGES - VA DEED OF TRUST

Legal title to the property is conveyed to a ________, and the _______ retains the equitable right to _______ the indebtedness secured by the trust and to obtain the property upon full payment.
THEORIES OF MORTGAGES - VA DEED OF TRUST

Legal title to the property is conveyed to a TRUSTEE, and the DEBTOR retains the equitable right to REPAY the indebtedness secured by the trust and to obtain the property upon full payment.
Equitable right to prevent foreclosure of a mortgage.

This is done by paying the debt and getting title to the property before a foreclosure sale.
EQUITY OF REDEMPTION

Equitable right to prevent foreclosure of a mortgage.

This is done by paying the debt and getting title to the property before a foreclosure sale.
Who holds the equity of redemption?
Who holds the equity of redemption?

Mortgagor + holders of interests in land subordinate to the foreclosing mortgagee

NOTE: The right to redeem cannot be waived! (b/c attempts to clog the equitable right to redeem are invalid)
When is the equity of redemption extinguished?
When the property is sold, UNLESS the mortgagor can show that there was some deficiency in the sale.
What is the SOL for equity of redemption?
The equity of redemption is not subject to a SOL.

However, the right to redeem is subject to LACHES.

In addition, there is a REBUTTABLE PRESUMPTION of ABANDONMENT if the mortgagor makes no claim in 20 years.
PRIORITIES---REDEMPTION VS. FORECLOSURE

Which has priority?
REDEMPTION takes priority over FORECLOSURE!

Until there is a foreclosure sale, anyone w/ a junior interest has a right to redeem by paying off the mortgage.
The equity of redemption represents a __________ INTEREST in the property and is ______ PROPERTY.

Therefore, it is __________ to heirs at law and subject to a widow's claim of ______ in VA.
The equity of redemption represents a BENEFICIAL INTEREST in the property and is REAL PROPERTY.

Therefore, it is DESCENDIBLE to heirs at law and subject to a widow's claim of DOWER in VA.
The equity of redemption represents a __________ INTEREST in the property and is ______ PROPERTY.

Therefore, it is __________ to heirs at law and subject to a widow's claim of ______ in VA.
The equity of redemption represents a BENEFICIAL INTEREST in the property and is REAL PROPERTY.

Therefore, it is DESCENDIBLE to heirs at law and subject to a widow's claim of DOWER in VA.
VIRGINIA DEED OF TRUST

The _________ usually conveyes title to a ________ under a deed of trust.

This gives the ______ the power to sell property out of court if the _________ defaults on the debt secured by the deed of trust.
VIRGINIA DEED OF TRUST

The MORTGAGOR usually conveyes title to a TRUSTEE under a deed of trust.

This gives the TRUSTEE the power to sell property out of court if the MORTGAGOR defaults on the debt secured by the deed of trust.