Secured Transactions

 
I. Credit/Purchasing Real Estate
a. Could pay all cash, still thats unusual
a. Could Borrow from bank
a. Unsecured credit is very expensive, if default thus creditor has to pursue debitor individually to collect to narrow a judgment. Once they deal a judgment, debtor is unlikely to have assets or they hide assets. Unsecured creditors are a vast risk so to compensate they charge huge elicit rates
a. Secured credit:
i. Debtor with hearty property. Assume debtor owns real estate and wants to borrow specie. Lender (Bank or other parties) gives cash to debtor and debtor executes a
1. promissory note (I owe you money and will pay it back with interest, 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 court
a. Consensual: Created by borrowers agreement
i. e.g. on bank account
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, can 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 most places...If you want to get a full essay, order it on our website: Orderessay



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