Priority, Termination of the Mortgage, and Other Methods of Using Real Estate as Security

LEARNING OBJECTIVES

1. Understand why it is important that the mortgagee (creditor) record her interest in the debtor’s real estate.
2. Know the basic rule of priority—who gets an interest in the property first in case of default—and the exceptions to the rule.
3. Recognize the three ways mortgages can be terminated: payment, assumption, and foreclosure.
4. Be familiar with other methods (besides mortgages) by which real property can be used as security for a creditor.