Model: C, a creditor, is thinking of lending O $50,000. O offers Blackacre as collateral.
- How does one create a mortgage?
- Mortgage: The conveyance of a security interest in land, intended by the parties to be collateral for the repayment of a debt. It’s a union of 2 elements:
- A debt
- Voluntary transfer of a security interest in debtor’s land to secure the debt.
- Debtor = mortgagor
- Creditor = mortgagee
- LEGAL MORTGAGE: The mortgage must be in writing to satisfy the Statute of Frauds.
- Also known as:
- “A note”
- “A security interest in land”
- “The mortgage deed”
- “A deed of trust”
- “A sale leaseback”