This site is a developmental version of Wiki Law School. To go to the production site: www.wikilawschool.org
Mortgage: Difference between revisions
From wikilawschool.net. Wiki Law School does not provide legal advice. For educational purposes only.
(→Types of mortgages: equitable mortgage) |
|||
Line 10: | Line 10: | ||
*Deed of trust = mortgagor (borrower) conveys the property in trust to a trustee (3rd party); the trustee may sell the property for the benefit of the lender if the borrower defaults | *Deed of trust = mortgagor (borrower) conveys the property in trust to a trustee (3rd party); the trustee may sell the property for the benefit of the lender if the borrower defaults | ||
* Equitable mortgage = conveyance of property by deed from the borrower to the lender; courts will treat the transaction as a mortgage | * Equitable mortgage = conveyance of property by deed from the borrower to the lender; courts will treat the transaction as a mortgage | ||
==Redemption of foreclosed property== | |||
The mortgagor (borrower) may reclaim (redeem) the property in 2 different ways: | |||
1. equity of redemption = redeem the property before the foreclosure proceedings are terminated | |||
2. statutory right of redemption = after the foreclosure proceedings are terminated. | |||
==See also== | ==See also== | ||
*[[Property Merrill/Outline]] | *[[Property Merrill/Outline]] | ||
*[[Property Singer/Outline]] | *[[Property Singer/Outline]] |
Revision as of 14:03, April 15, 2023
Since the 20th century, the mortgage was devised as a way to allow most people to buy property. Prior to 1900, property owners were understood to own their real property outright.
Terminology
- Mortgagor = borrower
- Mortgagee = lender
- Equity = Borrower's interest in the property
Types of mortgages
- Traditional mortgage = mortgage + promissory note
- Deed of trust = mortgagor (borrower) conveys the property in trust to a trustee (3rd party); the trustee may sell the property for the benefit of the lender if the borrower defaults
- Equitable mortgage = conveyance of property by deed from the borrower to the lender; courts will treat the transaction as a mortgage
Redemption of foreclosed property
The mortgagor (borrower) may reclaim (redeem) the property in 2 different ways:
1. equity of redemption = redeem the property before the foreclosure proceedings are terminated
2. statutory right of redemption = after the foreclosure proceedings are terminated.