Real Estate Finance Law / Edition 5

Real Estate Finance Law / Edition 5

by Grant S. Nelson, Dale A. Whitman

ISBN-10: 0314172483

ISBN-13: 9780314172488

Pub. Date: 10/28/2007

Publisher: West Academic

Real estate finance law is market-driven and therefore constantly changing. This treatise provides current, expert coverage on the law of mortgages; the necessity and nature of obligation; mortgage substitutes; foreclosure; statutory impacts; subrogation, contribution, and marshaling; government intervention; and financing real estate construction. Additional…  See more details below


Real estate finance law is market-driven and therefore constantly changing. This treatise provides current, expert coverage on the law of mortgages; the necessity and nature of obligation; mortgage substitutes; foreclosure; statutory impacts; subrogation, contribution, and marshaling; government intervention; and financing real estate construction. Additional consideration is given to the potential liability for cleaning up hazardous waste and the impact of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).

Product Details

West Academic
Publication date:
Edition description:
Product dimensions:
7.60(w) x 10.10(h) x 2.00(d)

Table of Contents

Westlaw Overviewvii
Chapter 1.An Introduction to the Law of Mortgages
1.1The Basic Mortgage Transaction1
1.2The Impact of English History5
1.3The Intervention of Equity7
1.4The American Development8
1.5The Title, Lien, and Intermediate Theories of Mortgage Law10
1.6The Deed of Trust as a Mortgage Variant11
1.7Mortgage Substitutes and Clogging the Equity of Redemption12
Chapter 2.The Necessity and Nature of the Obligation
2.1Necessity of Obligation15
2.2Nature of the Obligation20
2.3The Necessity of Consideration23
2.4Description of the Debt27
Chapter 3.Mortgage Substitutes
A.Restricting the Right to Redeem
3.1Clogging the Equity of Redemption34
3.2The Option to Purchase as a Clog on the Equity of Redemption40
3.3Subsequent Transactions43
B.The Absolute Deed
3.4The Absolute Deed With Separate Instrument of Defeasance46
3.5The Absolute Deed Coupled With an Oral Understanding--Reasons for Frequent Use48
3.6Parol Evidence--Admissibility50
3.7Burden of Proof52
3.8Factors Establishing an Absolute Deed as a Mortgage54
3.9Effect of Absolute Deed Between the Parties58
3.11Rights of Grantor on Sale by the Grantee59
C.The Conditional Sale
3.17Nature of the Transaction60
3.18Extrinsic Evidence62
3.19Factors Establishing Conditional Sale as a Mortgage65
E.The Installment Land Contract
3.26An Introduction to the Installment Land Contract70
3.27The Forfeiture Remedy--Some General Considerations71
3.28Statutory Limitations on Forfeiture73
3.29Judicial Limitations on Forfeiture77
3.30Constitutionality of Forfeiture93
3.31The Deed in Escrow as an Aid to Vendor Forfeiture Remedy96
3.32Other Remedies for Vendors97
3.33Title Problems for Vendees103
3.34Title Problems for Vendors108
3.35Mortgaging the Vendee's Interest--Problems for Mortgagees110
3.36Judgments Against Parties to Installment Land Contracts112
3.37Mortgaging the Vendor's Interest--Problems for Mortgagees115
3.38The Installment Land Contract--A Call for Its Demise121
F.The Negative Covenant as a Mortgage Substitute
3.39The Negative Covenant and the "Coast Bank" Mortgage124
Chapter 4.Rights and Duties of the Parties Prior to Foreclosure
A.Theories of Title and the Right to Possession
4.1The Title Theory130
4.2The Lien Theory134
4.3The Intermediate Theory137
B.Tortious Injury to Land by Mortgagor or Third Persons
4.4Tortious Injury by the Mortgagor139
4.5Injury by Third Parties147
4.10Equitable Relief Against the Mortgagor for Threatened Injury150
4.11Enforcing Specific Covenants Against Waste152
C.Rights in the Product of the Res
4.12Eminent Domain155
4.13Insurance--Some General Considerations159
4.14Insurance--Types of Policies163
4.15Insurance--Restoration of Premises167
4.16Insurance--Effect of Foreclosure Purchase by Mortgagee171
D.Escrows or Reserves for Taxes and Insurance
4.17Escrow Accounts--Some General Considerations175
4.18Judicial Scrutiny of Escrow Accounts177
4.19Statutory and Related Regulation180
E.Right to Rents
4.20General Considerations186
4.23Lien States187
F.Mortgagee in Possession
4.24"Mortgagee-in-Possession" Rule188
4.25What Constitutes Possession193
4.26Liability of Mortgagee to Third Parties195
4.27The Mortgagee's Duty to Account--Nature and Scope196
4.28The Duty to Account for Rents199
4.29Maintenance and Improvements201
4.33General Considerations206
4.34Basis for Appointment--Title and Lien Jurisdictions208
4.35Agreements for Rents, Profits, and Receiverships214
4.36Ex Parte Receivership--Constitutional Problems226
4.40Receivership--Mortgagor in Possession228
4.41Receivership--Mortgagor Conducting Business230
4.42Receivership--"Milking" by the Mortgagor232
4.43Priorities Between Mortgagees as to Rents238
I.Mortgagee Liability for Environmental Problems
4.48Mortgagee Liability Under CERCLA242
4.49The 1992 E.P.A. Lender Liability Regulation245
4.50The CERCLA Lien250
4.51Environmental Problems--Suggestions for Mortgagees251
Chapter 5.Transfer by the Mortgagor and the Mortgagee
A.Transfer by the Mortgagor
5.1Transferability of Mortgagor's Interest254
5.2Methods of Sale of Mortgaged Land255
5.3Transfer "Subject To" the Mortgage257
5.4Assumption of the Mortgage--In General259
5.5Assumption of the Mortgage--Deed Provisions262
5.6Assumption of the Mortgage--Statute of Frauds263
5.7Assumption of the Mortgage--Parol Evidence Rule265
5.8Implied Personal Obligations268
5.9Rights of Transferor--Non-assuming Grantee270
5.10Rights of Transferor--Assuming Grantee274
5.11Mortgagee vs. Assuming Grantee--In General278
5.12Mortgagee vs. Assuming Grantee--Third Party Beneficiary280
5.14Mortgagee vs. Assuming Grantee--Miscellaneous Theories281
5.15Successive Purchasers283
5.16Assumption by Second Mortgagee287
5.17Grantee's Defenses Against Mortgagee289
5.18Subsequent Discharge or Modification of Rights Between Grantor and Grantee292
5.19Extension, Release and Other Modification--Suretyship and the Mortgagor295
5.20Effect of the Uniform Commercial Code, pre-1990 Official Text, on Suretyship Defenses315
B.Restrictions on Transfer by the Mortgagor
5.21The Due-on Clauses--Introduction318
5.22Due-on Clauses--Pre-Garn-St. Germain Act State Judicial and Legislative Response324
5.23Due-on Clauses--Pre-Garn-St. Germain Act Federal Regulation333
5.24Due-on Clauses--The Garn-St. Germain Act335
5.25The Due-on Clauses--Concealment of Transfers356
5.26Due-on Clauses--Conclusion361
C.Transfer by the Mortgagee
5.27Introduction--Nature of the Mortgagee's Interest364
5.28Methods of Transfer368
5.29Negotiability and Negotiation387
5.30Statutory and Regulatory Limitations on the Holder In Due Course Doctrine398
5.31Rights of Holders in Due Course405
5.32Rights of Assignees Who Are Not Holders in Due Course408
5.33Payment to Assignor as a Defense414
5.34Impact of Recording Acts423
5.35Partial Assignments and Participations439
Chapter 6.Discharge of the Mortgage
6.1Prepayment--General Considerations455
6.2Prepayment Clauses--Judicial Treatment460
6.3Prepayment Clauses--Involuntary Prepayment468
6.4Prepayment Clauses--Legislative and Other Nonjudicial Regulation473
6.5Prepayment Penalties--Collection Incident to Due-on-Sale Enforcement482
6.6Payment and Redemption484
6.7Tender on or After Maturity494
6.8Late Payment Charges and Default Interest--Introduction500
6.9Late Payment Charges and Default Interest--Judicial Interpretation502
6.10Late Payment Charges and Default Interest--Legislative and Other Regulatory Impact510
6.15Merger--General Considerations513
6.16Merger--Between the Parties to the Mortgage514
6.17Merger--Intervening Interests520
D.The Deed in Lieu of Foreclosure
6.18Reasons for Use524
6.19Potential Pitfalls for the Mortgagee525
Chapter 7.Foreclosure
A.Redemption from the Mortgage
7.1Redemption From the Mortgage and Statutory Redemption--Definitions533
7.2Who May Redeem534
7.3Amount to Be Paid537
B.Accrual of the Right to Foreclosure
7.6Acceleration Clauses--In General539
7.7Limitations on Acceleration543
7.8The Absence of an Acceleration Clause--Effect on Foreclosure552
C.Strict Foreclosure
7.9The Nature of Strict Foreclosure554
7.10Use of Strict Foreclosure555
D.Judicial Foreclosure
7.11Judicial Foreclosure--General Characteristics558
7.12Parties Defendant and the "Necessary-Proper" Party Distinction560
7.13Joinder--Effect of Recording Acts and Lis Pendens565
7.14Senior Lienors and Adverse Interests568
7.15Omitted Parties572
7.18Judicial Foreclosure--Defects and Title Stability580
E.Power of Sale Foreclosure
7.19General Considerations581
7.20Defective Power of Sale Foreclosure--The "Void-Voidable" Distinction585
7.21Defective Power of Sale Foreclosure--Specific Problems588
7.22Defective Power of Sale Foreclosure--Remedies605
7.23Constitutionality of Power of Sale Foreclosure--Introduction615
7.24Constitutional Problems--Notice615
7.25Constitutional Problems--Hearing621
7.26Constitutional Problems--Waiver625
7.27Constitutional Problems--State Action628
7.28Constitutional Problems--Federal Action634
7.29Constitutional Problems--Title Difficulties639
7.30Constitutional Problems--Conclusion641
F.Disposition of Surplus
7.31Surplus--General Rules643
7.32Surplus--Some Special Problems647
Chapter 8.Statutory Impacts on Foreclosure
A.Regulation of Deficiency Judgments
8.1Deficiency Judgments--In General651
8.2The "One Action" Rule656
8.3Anti-deficiency Legislation658
B.Statutory Redemption
8.4General Characteristics689
8.5Who May Redeem--Nature of Interest692
8.6Effect of Redemption--By Mortgagor or Successor694
8.7Effect of Redemption--By Lienors699
8.8Reforming the Foreclosure Process702
8.12General Considerations706
8.13Straight Bankruptcy708
8.14The Chapter 11 Reorganization713
8.15The Chapter 13 "Wage Earner" Plan733
8.16Chapter 12 (Family Farmer Bankruptcy Act of 1986)751
8.17Setting Aside Pre-bankruptcy Foreclosures757
8.18Rents in Bankruptcy767
8.19Installment Land Contracts in Bankruptcy778
Chapter 9.Some Priority Problems
9.1Purchase Money Mortgage Priority Concepts781
9.2Purchase Money Mortgages--Recording Act Problems788
9.3After-Acquired Property Clauses792
9.4Replacement and Modification of Senior Mortgages--Effect on Intervening Lienors797
9.6Fixtures--Pre-UCC Law805
9.7Fixtures Under the UCC807
9.8Wraparound Mortgages815
Chapter 10.Subrogation, Contribution and Marshaling
A.Subrogation and Contribution
10.1General Principles827
10.9General Principles833
Chapter 11.Government Intervention in the Mortgage Market
11.1The Mortgage Market, Institutional Lenders, and Their Regulators840
11.2Mortgage Insurers and Guarantors848
11.3Government-Sponsored Mortgage Market Support Agencies and Private Securitization864
11.4Alternative Mortgage Instruments881
11.5Discrimination in Mortgage Lending908
11.6Federal Preemption of State Mortgage Law921
Chapter 12.Financing Real Estate Construction
12.1Construction Lending--An Overview938
12.2Construction Contracts and Bonds946
12.3Mortgage Loan Commitments957
12.4Mechanics' Liens975
12.5Mechanics' Liens--Constitutionality985
12.6The Stop Notice and the Equitable Lien995
12.7Future Advances1005
12.8Dragnet Clauses1025
12.10Improper Disbursement of Loan Proceeds1051
12.11Lender Liability for Construction Defects or Other Wrongful Acts of Contractors1065
Table of Cases1089

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