A borrower failed to make several payments due on a business…
A borrower failed to make several payments due on a business loan. While the borrower was in the hospital recovering from a major operation, the lender, a family friend, approached the borrower’s wife about additional security for the business loan. The lender intimated that, if some action was not taken concerning the loan, the lender would have to file a civil action. Distraught over her husband’s physical condition, the borrower’s wife, at the lender’s suggestion, granted the lender a mortgage on valuable property that she had recently inherited. The mortgaged property was to serve as additional security for the business loan. As a consequence of the mortgage, the lender did not reduce the outstanding amount of the business loan but did extend the time in which the borrower had to repay the loan. Of the following, which would be the best basis on which the borrower’s wife can seek to avoid the mortgage?