RE-160 Lecture Notes - Lecture 27: Security Interest, Promissory Note, Ordinary Income
22 Dec 2020
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A promissory note is normally executed contemporaneously with the mortgage. It admits the debt and generally makes the borrower personally liable for the obligation. property as security for the debt. The mortgage is usually a separate document which pledges the designated. Mortgage will normally elect to sue on the note and foreclose his mortgage. Mortgage includes clauses containing important covenants for both the. Interest which can be mortgaged any interest in real estate that is subject to sale, grant or assignment (any interest that can be transferred) can be mortgaged. This includes diverse interest such as fee simple estate, life estates, estates of years, remainders, reversions, leasehold interest and options to purchase real estate etc are all mortgageable interests. Requirements for a valid mortgage document are: wording that appropriately express the intent of the parties to create a security interest in real property for the benefit of the mortgagee, other items required by state law.
