Secured Transactions

  I. Credit/Purchasing Real Estate a. Could relent either cash, still thats unusual a. Could Borrow from bank a. Unsecured credit entry is very expensive, if default thus creditor has to pursue debitor individually to postulate to narrow a judgment. Once they deal a judgment, debitor is unlikely to have assets or they hide assets. Unsecured creditors are a vast risk so to compensate they displume huge elicit rates a. Secured credit: i. Debtor with square(a) proportion. Assume debtor owns corporeal estate and wants to borrow specie. loaner (Bank or other parties) gives cash to debtor and debtor executes a 1. promissory eyeshade (I owe you money and will pay it back with refer, its a K for announce to pay. Its an compact of debtor to pay debt back over season with interest to the lender or assignee). The note evidences the creation of the debt and the obligation to pay. --AND-- 1. lien on the real property (right to seize or sell property to satisfy an unpaid debt) a. Nonconsensual lien: vox populi by tribunal a. Consensual: Created by borrowers agreement i. e.g. on bank method of accounting i. Inventory i. Receivables a.

The documents that effect the lien that encumber the related. The lien is the interest in the property. i. mortgage (CA doesnt use this term) i. Deed of trust (TD) ! a. The real property is the collateral/security for the lien. The lender, in event of default, give the gate demand payment. If debtor cant pay, lender seizes and sells real property (foreclosure). The lender is in a much better position than if lender was unsecured. i. Mortgage: debtor with real property. Debtor executes a note in estimate of the lender. Traditionally the mortgage transferred the title of the real property to the lender. This conjecture is out of favor in roughly places...If you want to get a full essay, order it on our website: BestEssayCheap.com

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