2. Do the Same Thing As #1 in a Lien State Such As IL. Follow the Same Limitations

Foreclosure hypos

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. Cameron Swanson, seeking to raise money to pay his American Express bills from a trip over Spring Break, mortgages his condo in One Charles Condominium in Boston to Tamara Sonenshein in exchange for $100K. He defaults on his mortgage payments, but Sonenshein is relaxed about it. Laura Padron, on the other hand is offended by what she considers Swanson’s casual approach to satisfying his obligations. She files an action in the relevant court in Boston to foreclose on the condo, and buys it at the foreclosure sale for $7500. She then almost immediately "flips" it for $300K to Elizabeth Orr. Can Swanson get the property back from Orr? How?

4. Swanson, outraged, complains to Sonenshein. Sonenshein says, "I never heard of her, let alone sold my mortgage to her." But then Sonenshein secretly contacts Padron and says she will transfer her mortage to her "to clean up the paperwork" in exchange for half of her $292,500 profit. She happily agrees, pays Sonenshein $146,250, and she assigns the mortgage to her. How does this affect the outcome?

5. Suppose all this involved a condo in PT, in Chicago. Where, specifically, would you look to see if IL law is different from MA law?

6. Mother Hubbard paid off Evanston house she bought for $20K in 1950; now worth $400K

" "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

" Auction in Homewood at 2300 in back of bar