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and pay First Bank and Trust a fee of $1000. notify First Bank and Trust that you are selling the property and that the purchaser will assume the loan. First Bank and Trust responds that it will not consent to the sale unless you provide financial information concerning the purchaser CASE PROBLEMS 1. The street in front of Sarah Baker's house is being widened from two to four lanes. The wid- ening will require the county to take approxi- mately 10 feet of Sarah's front yard. The county has promised to pay Sarah $20,000 for the land being taken. Sarah's home loan is secured by a mortgage to First Bank and Trust. You have been requested by the attorney who represents Sarah to review the First Bank and Trust mortgage papers to see if that lender has any claim to the proceeds. What would you look for in the mort- gage loan documents, and what would you expect to find? 2. You have been asked to prepare a construction loan agreement for a lender client of the firm. The lender wants the maximum protection against problems as it disburses the loan proceeds. In drafting the construction loan agreement, what requirements would you add for the disburse- ment of the loan proceeds during construction? 3. You have been asked to prepare a mortgage to secure a real estate loan transaction. You have been asked to use the Fannie Mae/Freddie Mac Uniform Mortgage. What information do you need to prepare the mortgage? 4. You have granted a mortgage on your home to First Bank and Trust. The mortgage is a Fannie Mae/Freddie Mac Uniform Mortgage. You cur- rently have the home under a contract for sale. You want to be able to sell the home and have the purchaser assume the mortgage to First Bank and Trust. Two days before the closing of the sale, you First Bank and Trust also informs you that if you refuse to cooperate and sell the home without it consent, it will call the loan in default and fore close. Can First Bank and Trust legally do this? Explain. 5. You have been asked to prepare a UCC-1 financ- ing statement. What information do you need to prepare the document? 6. You are a paralegal in a law firm that represents lenders that make mortgage loans. Your job is to prepare mortgage loan documents from instruc- tions given to you by the lender client. The lender client gives you a written letter indicating that it is making a loan to Acme Builders to construct a home on Lot B-5 of the Oaks subdivision. A title exam prepared for the closing shows that Acme Builders is not the owner of Lot B-5, but does own Lot D-5. Should you prepare the document as instructed showing Lot B-5 as the secure property? Should you inform the lender about th results of the title exam? Why is this importar in connection with the closing and your role preparing the mortgage loan documents