LAW 805 Lecture Notes - Lecture 8: Luxury Goods, United States District Court, Surety
25 Aug 2018
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Laws assisting creditors: default- when a debtor fails to pay. Liens- a claim against property to satisfy a debt. If a contractor builds you a house and you refuse to pa(cid:455) the(cid:373), (cid:455)ou (cid:272)a(cid:374)"t sell the house u(cid:374)til the lie(cid:374) is re(cid:373)o(cid:448)ed. The mortgagor makes a down payment and the bank supplies the rest. The mortgage is recorded with the proper government entity to ensure that the mortgagor cannot sell the property and take the proceeds without paying the debt. A foreclosure is the legal proceeding in which a creditor takes back the property and sells it to satisfy the debt. Forbearance, workout agreements, and short sales are pursued before foreclosure: suretyship and guaranty- a third party guarantees to pay the debts of another. Contracts must be in writing, and the third party can later try and collect from the debtor (unless the contract says otherwise). A surety is the third party that is responsible for paying the debt.
