Flashcards in Mortgage law chapter 15 Deck (8)
what is mortgage?
is voluntary lien on real estate
who is mortgagor?
the borrower, pledges the land to the lender
what is title theory state?
the mortgagor actually gives legal title to the mortgage and retains equitable title. legal returned to the mortgagor when the debt is paid in full. In theory the lender hold the title until the debt is paid.
what is lien theory?
the mortgagor holds both legal and equitable tile. the mortgagee simple has lien on the property
what is intermediate mortgage?
based on the principles of title theory states but still requiring the mortgagee to formally foreclose to obtain legal title
what is defeasance clause?
which stipulates that such title must be fully recovered, or released back, to the mortgagor at the time dept is repaid in full.
what is acceleration clause?
asking for the loan to be paid in full based on the borrowers have broken the original promise to repay regular payment