© OnCourse Learning Chapter 9 : Mortgages and Notes

 Contract between a borrower and lender  Obligor, obligee  Principal  Acceleration clause  Signature © OnCourse Learning PROMISSORY NOTE

The Mortgage Instrument A separate agreement from the note that provides collateral to the lender to back up the promise made in the note by the borrower/mortgagor. © OnCourse Learning

Step 1 Buyer gives note to lender and receives $$ Step 2 Buyer pays $$ to seller and receives deed Step 3 Buyer has clear title and gives mortgage to lender Note and Mortgage Sequence © OnCourse Learning

 Covenant to pay taxes  Covenant against removal  Covenant of insurance  Covenant of good repair  Covenant of preservation & maintenance © OnCourse Learning COVENANTS (PROMISES)

 Partial Release  Subject to  Assumption  Novation  Estoppel © OnCourse Learning MORTGAGE SATISFACTION

 First mortgage / Senior mortgage  Second mortgage / Junior mortgage  Subordination  Chattel liens  Foreclosure / Power of Sale © OnCourse Learning Debt Priorities

Overview of Mortgage Foreclosure © OnCourse Learning

 Acceleration clause  Deficiency judgment  First mortgage  Foreclosure  Junior mortgage  Mortgage  Mortgagee  Power of sale  Promissory note  Subordination © OnCourse Learning Key Terms