Mortgages and Recording Acts

Question 1

Common Law

Answer 1

Title theory.
Bank has title

Question 2

Modern Law

Answer 2

Lien theory (VA)
Bank gets a lien and come after property to pay the debt, but buyer owns the house.
Give right of redemption

Question 3

Anti-deficiency statutes

Answer 3

protect some borrowers from deficiency judgements. Mortgagee take steps to protect the equity in the mortgager.
i. Mortgagee has to exercise good faith and due diligence and must commercially reasonable means to sell property.
ii. Mortgaors Daamges for Failure to Exercise GF and DD in foreclosure sale
1. Bad faith: MKV – Sale Price + Attorney’s fees
2. No bad daith: fair price – sale price
iii. Murphy Rule: mortgagee must take steps to protect mortgager’s equity

Question 4

Land Installment Contracts

Answer 4

Title passes only when all payments made.
elongated executory period

CL: default then no right

ML: modern fairness standards (seller must give notice)

Strictly enforcing:
abandoning, absconding
or
whenever buyer only paid minimal amount and defaults