Week 9 Real Estate
1) List the items one might include in an action for breach of contract for sale and purchase. Why did you include those items?
2) what remedies might a borrower seek to prevent foreclosure?
3) outline the steps to be taken in a nonjudicial foreclosure?
4) outline the steps to be taken in a judicial foreclosure.
5) Explain the manner in which lienholders are paid in the event of a foreclosure.
6) Distinguish between (a) strict foreclosure and (b) entry foreclosure.
7) Christine Guthrie owned a condominium unit in Bromwell Estates condominium development. ABC Bank held a first mortgage on the unit, and Forsythe Funding Corporation held a second mortgage on the unit, Forsythe Funding Corporation assigned the second mortgage to XYZ Bank. Six months later, Christine defaulted on her loans. She also had not paid her condominium assessments for the last three months, and the Bromwell Estates Condominium Association filed a lien against her unit. ABC Bank, the first mortgagee, instituted a judicial foreclosure proceeding. in its complaint, it named Christine, Forsythe Funding Corporation, and Bromwell Estates Condominium Association as defendants. Christine and the condominium association answered the complaint; Forsythe Funding Corporation never responded to the complaint and thus defaulted. A summary judgment of foreclosure was ordered by the court, and the condominium unit was sold to a third party. The sale produced excess funds. The condominium association motioned the court for distribution of the excess funds, and the court ordered that 40 percent of the excess funds be disbursed to the condominium association to cover the unpaid assessment and attorneys’ fee incurred by the association and ordered that the remaining 60 percent of the excess funds be disbursed to Christine. XYZ Bank is now coming forward to challenge the court’s distribution. it has submitted proof that it holds the unsatisfied second mortgage. Christine maintains that because Forsythe Funding Corporation, the original junior lienholder, defaulted, XYZ Bank cannot come forward now to claim the surplus funds. Who has the superior right in this situation, and why?
8) Todd and Charlotte Gilbert (the trustors) owned a house that was encumbered by a deed of trust securing a loan. The lender – beneficiary is Magna Bank, and the trustee is American Trustee Company ( American). The Gilberts missed payments on the loan, and the loan went into default. Magna Bank directed American to record a Notice of Default and Election to Sell Under Deed of Trust and a Notice of Trustee’s Sale. Four days prior to the sale, the Gilberts tendered a payment at a branch of Magna Bank. Payment was accepted by a branch employee, who reinstated the loan. Magna Bank never notified American that the loan had been reinstated, and, therefore, American proceed with the foreclosure, and the property was sold to a third party, Kincade property Group ( Kincade ). KIncade received and record a trustee’s deed. A few days after the deed was recorded, American informed Kincade that a mistake had been made. It recorded a Notice of Rescission of Trustee’s Deed and tendered a refund check to Kincade. Kincade has refused to accept the tender of the refund check. Magna Bank has filed an action against Kincade , seeking cancellation of the trustee’s deed. Kincade has filed a cross – complaint for slander of title, requesting cancellation of the Notice of Rescission of Trustee and election to Sell Under Deed of Trustee’s Deed, and the Gilberts have filed an action against Magna, American, and Kincade. How should this matter be resolved?
10) Jay Montgomey conveyed a parcel of property to Philip Burnett by general warranty deed in exchange for a down payment, a promissory note,and a deed of trust. Both the note and the deed of trust contained an acceleration clause stating that, if all or any part of the party or interest therein was sold or transferred by the note maker without the payee’s prior written consent, excluding the creation of a lien or encumbrance subordinate to the deed of trust, them the payee could, at his option, declare all sums secured by the deed of trust immediately due and payable
Several years after the execution of the promissory note and deed of trust. Philip granted a twenty – five – foot drainage easement across the back of the property to a third party. when jay found out about the easement, he invoked the acceleration clause and demanded full of the balance due on the promissory . Philip did not pay the full balance within the time specified in the letter, and jay instructed the trust to foreclose on the property. Philip seek an an injunction to prevent the foreclosure sale which party will prevail? why?