1. Draft a conveyance that has the same effect as a mortgage in a “title state” like MA. Do not use the word “mortgage,” and do not use a trust; use only estates-system concepts and terminology. Make sure it is valid under RAP.
2. Do the same thing as #1 in a “lien state” such as IL. Follow the same limitations.
3. John Lawliss,
seeking to raise money to pay his American Express bills from a trip over
Spring Break, mortgages his condo in One Charles Condominium in
4. Lawliss, outraged, complains to Holub. Holub says, "I never heard of her, let alone sold my mortgage to her." But then Holub secretly contacts Volk and says he will transfer his mortage to her "to clean up the paperwork" in exchange for half of her $292,500 profit. She happily agrees, pays Holub $146,250, and he assigns the mortgage to her. How does this affect the outcome?
5. Suppose all this involved
a condo in PT, in
6. Mother Hubbard paid off
" "Home equity mtg" for $390K 30-yr ARM
" $1644 @ 3pct
" $2338 @ 6 pct
" Kept $300K in bank @ 3.5%= $875/mo
" SS benefit=$917/mo
7. She sells, for $400K
" What does buyer get
" What does she have afterward
8. Deal is that buyer pays Mother Hubbard $1644 per month; Mother Hubbard continues as mortgagor
" Interest rates go up to 6%; MH defaults
" Lender forecloses
" House sells for $300K
" House sells for $450K
" House sells for $100K to lender
" Lender's secretary bid $90K