Newspapers / The Kings Mountain Herald … / May 20, 1954, edition 1 / Page 16
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THIS IS THE LAW by Charles W. Daniel * ? . for the I ' North Carolina Bar Association I MORTGAGES The word "mortgage" has a definite meahlng for almost ev eryone. The law concerning mortgages is continually grow ing in response to changing us es made of this device. This dis cussion will deal solely with mortgages on real estate, al though many of the principles discussed apply equally to mort gages on personal property, or "chattel mortgages," as they are known. . A mortgage has been defined . as any form of Instrument wher \ eby title to real estate is reserv j ed or conveyed as security for the payment of a debt or the ful fillment of other obligation. Thus, a mortgage can 'be \ised as security for the, performance ol the conditions of a bond or oth et agreement. However, the most frequent use made of the mort gage Is to secure the repayment of a loan of money made to the borrower, or mortgagor.- His ob ligation to repay the loan is -us ually contained in a note or notes, which are separate from the mortgage. The mortgage it self refers to the note or notes executed by the borrower, and states that the title to the prop erty has been conveyed to the lender or mortgagee, who may. under certain conditions, enforce the payment of the note or notes through the foreclosure of the mortgage and the sale of the property. DEEDS OF TRUST In North Carolina, the term "mortgage" is commonly, used to Include, in addition to the con ventional mortgage, another pa per kr?own as a "deed of trust." Instead of being a two-party in strument like the mortgage, the deed of trust Is a three-party pa per. The borrower in this type of instrument < ;nveys the title to his property, to a trustee to se cure the repayment of his hote i or notes to the lender. The trus 1 tee has no direct interest in the " i security; he merely holds the le - - gal title to the property so long as the deed of trust is outstand ing. It is his duty to foreclose the deed of trust If a default oc curs and If the lender demands foreclosure. For purposes of this article the term "mortgage" will include "deed of trust" as well, except where indicated other wise. A mortgage must ordinarily meet certain formal .requisites First of all, it must be properly signed by the owners of the real estate included in the mortgage Secondly, the property conveyed as security must be described sufficiently to permit its identi. ficatiori. Thirdly, the mortgage must state that the conveyance is conditional upon the payment of a certain sum, or the fulfill ment of certain conditions. Fin ally, a mortgage should be re corded in the Register of Deeds office in order to give all persons notice of its existence and to es tablish its priority. Failure of a mortgage to meet these require ments Ordinarily renders it in valid and unenforceable. FORECLOSURE So long as the borrower meets j the payments on the mortgage, | the lender cannot foreclose. Upon the failure of the borrow er to comply with the terms ot the mortgage, the lender has the right to foreclose on the proper ty. Default in meeting the terms of payment is the main cause of foreclosure. 'However, the mort gagor may have failed to per form other conditions of the mortgage, such as the payment of taxes on the property. Most mortgages for the pay ment of money in installments contain what is known as an "acceleration clause." This clau se provides that, upon default 10 making any payment under the mortgage, the mortgagee has an option to declare the full unpaid balance of the indebtedness due. $nd to foreclose for the payment of this entire balance. Foreclosures may toe accom plished in either of two princi pal ways: (1) Through the filing of a law suit; (2) Through the power of sale set out in the mortgage itself. The second of these two procedures is the one usually employed. The requirements of foreclos ure under the terms of the mort gage are Carefully set out in out laws. The foreclosure sale must be advertised for at least 30 days by postlns a notice of sale at the courthouse and by ^newspaper advertisement. The actual fore closure sale is held at the courts house and is in the form of ..a public auction," unless the court order or notice of sale provides otherwise. At the isale, the property is sold We Call for W ^ It We Deliver IT Every washday is like your birthday. You get a big. wonderful package that's a delight to open. Inside is your laundry ? crackling clean, sweet smelling, correctly starched and fastidiously ironed. You're carefree and daisy-fresh, so nice to come home to? because you use our reliable laundry service. . ' | PHONE 1151 | Drive-In Opens "Robe" Showing The Bessemer City ? Kings Mountain Drive-In theatre has completed installation of Cinema- j Scope and stereophonic sound equipment, according to Gay Stinett, owner of the theatre, and opened a week-long presentation j of "The Robe" on May 12. New equipment installed In the theatre included new speakers, two to each car, a large 42 x 90 foot screen and all new booth equipment. The new. Equipment enables the theatre, Mr. Stinfett said, to bring to the public the new Cirte maScopc films1. to the highest bidder. The bor rower can, of course, ibid at the sale. The sale does not become* final until ten days have elaps. ed, during which time the bid may be raised. Upon the filing of a raise of bid, the property must be read vert ised and - rerold at public auction. This procedure may toe repeated as often as rai ses Of bid aie filed on the prop erty. At any time prior to the fi nal expiratio:. of time for raise of bid, the borrower can stop the foreclosure proceedings toy pay ing off the debt, plus accrued costs. DEFICIENCY JUDGMENTS What can the lender do if the property fails to bring a .price Sufficient to pay off the indebt edness? Subject to one impor tant exception noted below, the lender can sue the borrower and obtain a Judgment requiring him to . pay the difference (between the mortgage debt and the a mount realized from the fore closure sale. Such a judgment is spoken of as a "deficiency Judg ment." Under North Carolina law a lender cannot bring suit for a deficiency judgment where the mortgage was originally given to secure the payment of the bal ance due upon the PURCHASE PRICE of real estate. In other words, the lender must rely solely upon the real estate to re cover the balance due upon a purchase money mortgage. This rule of law was enacted during the depression of the 1830's. TRANSFER QF MORTGAGED PROPERTY Can the borrower on real es tate transfer the property with out paying off the debt? Ordi narily, the borrower can sell or otherwise dispose of the proper ty as he sees fit, leaving the mortgage debt unaffected. The new owner of the property must, of course, keep up the payments on the mortgage. The holder of the note secured by the mort gage must accept payments of the debt from the new owner of the property. M the new owner of the mort gaged real estate defaults in his payments, can the original bor rower still toe forced to make these payments? As a practical matter, the question seldom a rises. The holder of the debt or. dinarlly depends only on the real estate for payment. As a matter of law, he is required first of all to foreclose against the real estate. If the mortgage, as shown on its face, was originally a "purchase money mortgage," then, as noted above, the land alone must stand for the debt. The fact that the original bor rower has transferred his inter est to another does not alter this fact. If the mortgage was NOT originally a "purchase money mortgage," then, the (borrower can toe required to make up any deficiency of the mortgage debt after .foreclosure. Any subse quent owner of the real estate, who expressly agreed to pay the debt, can likewise be required to make up any deficiency,. v PAYING OFF THE MORTGAGE The usual method of disposing of a mortgage debt is, of course, toy payment in full. At the time of payment the mortgage or deed of trust, and the accompa nying notes, should be martced "satisfied and paid in full" by the holder of the debt, and should be presented to the Reg ister of Deeds for cancellation. Failure to have the papers promptly presented for cancel lation may give rise to trouble later, should the original papers be misplaced. Hen* and pullets in North Car olina during 1962 produced 50 percent more *ggs than they did I in 1992. low ims NATIONAL BMHK Weeds are probably the num ber one probltm in vegetable gar dens during the summer season. They choke out small plants and compete with them for the nutri ents and moisture in the soil. The old control method of pultlvator, sweep and hoe is still a good one but means a lot of hard work and the modern gardener is looking for an easier wa^ out. Everyone is looking for a chem ical that can be sprayed on the garden and which will kill all the weeds and grass without harm ing thte vegetables. That is a big order. The trouble lies in the fact that we grow so many different kinds of vegetables and they be long to so many botanical species and families . ? some of which are closely related to our common' weeds ? that the chemical^ used to control weeds will also kill the vegetables. .? For several years commercial carrot growers have been success fully using solvents and certain oils as sprays to kill weeds in carrot fields. Onion growers have also had some success with the use of chemicals. In recent years a material known as 2,4-D has been usfed extensively to kill broadleaved weeds in corn, gladi olus and in lawns. Used at the proper strength, 2,-4-D has not caused injury to these crop plants and has effectively controlled weeds. Howevbr, the spray of 2-4 D will drift in the wind and cause damage to other crop plants and shrubbery and grape vines. A sprayer used for 2,4-D should not be uscM to spray other plants. Most vegetables and other gar den crops arte susceptible to se vere damage by the usual herbi cides so the chemical companies have been busy experimenting with other materials. The latest developments are the preemer gence sprays. These pre-emergen ee weed, killers do not act like other herbicides in that they have no effect on well established | weeds or crop plants. They are very effective against weeds that jare Just germinating or are just 'emerging from the soil but are 'less than 1-4 inch in height. Pre-emergence sprays are best applied to freshly cultivated soil. One application will usually keep the soil free from weeds for three weeks or more. Then the cultiva tion and spray application must be repeated. Well-developed crop ! plants are not harmed by these pre-emergence sprays but neither are well developed weeds. North Carolina grain dealers ! are expected to organize a state jwide trade association in the near I future. PRESCRIPTION SERVICE We Fill any Doctors' Pre scriptions promptly and accurately at reasonable prices with the confidence of your physician. . Kings Mountain Drug Company THE REX ALL STORE Phones 41 ? 81 We Call For and Deliver SUBSCRIBB TO THE HERALD Merchants Warned Of Check Flasher All business establishments in the Kings Mountain area, espe cially garages and service sta tions. have been asked by the po lice department to be on the alert for a bad check artist. According to the police depart ment, the passer usually presents a check in the *amount of $32.50, and signed Joe Hill. Alter the checks are cashed, the police said, the ntan spends a small amount of the cash. | Police also said that the man may be riding with another man and two or three small children in a 19-10 coupe with SL C. license C34559. , . | United States farmers will like jly plant about 11 per cent less | acres of Irish potatoes in 195-1 jthan a year earlier. I ? ? Feel Brighter Tomorrow! DRINK Cheerwim TODAY!. CHEER WINE PROVIDES NEEDED Drink to your h?oltK Drink for larti v? ^ HwHb. Next time ond wry time, drink delicious CHEERWfNC. J j Chcerwine is in tune with yomr taatm ! SUBSCRIBE TO THE HERALD! National new car registration figures* for a seven-month period -'If 5 . S i *'? V* , ? *.-?S . " ' ! -^* * - tfiow Ford out front ? by thousands!. The American people know automobile value better than any other people on earth. So, to gain widespread public favor, a car must be good. But to be first in public favor, a car must be better than all others, on a dollar-for dollar basis! And it is on this, basis that Ford has earned sales leadership 6ver all other cars in the nation I Just look at Ford qjid see the trend-setting styling it offers in its 14 brilliant body styles, with beautifully harmonized Interiors. Check its features and you'll find that only Ford in its field offers Ball-Joint Front Suspension, for easier riding and handling . , . only Ford offers youjr choice of the industry's most modern engines: the 130-h.p. Y-bloclc V-8 and 115-h.p. I-block Six. Test Drive Ford and feel the won derful performance, driving ea$e, and relaxing ride it gives you . . . and youll want to end your Test Drive right in your own home faragel People buy -ft** VALUE... tfia& why Ifhebecf seller- & OTOR COMMMm ,|J?od Triuk ? Bt $u>r? to S# ?-.Your Fo'rct Do olor
The Kings Mountain Herald (Kings Mountain, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
May 20, 1954, edition 1
16
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