As the number of people undertaking loans to meet their personal expenses has risen
significantly, a lot of people are undertaking mortgages in order to secure the loans.Mortgage can be best defined as the method of making use of personal property and
giving it out as security in lieu of the payment of the debt undertaken by an
Mortgage is a term which has its origins from the French word, lit pledge which hints
at a legal component used for procurement of a loan. Mortgages are generally given out
on personal property, such as home. Most of the loans secured through the mode of
mortgages are secured by mortgaging the real estate property i.e. the home of an
In some other cases, where the loan is to be procured for extremely professional
purposes, lending companies even accept other personal properties, such as car, land or
even ships to be mortgaged.
Mortgage loans are undertaken by the masses mostly when they want to make a new
investment in the sphere of real estate, property and land.
Before giving out any part of the personal property on mortgage, it is advisable for an
individual to be well-versed with all the intricacies and legal formalities which are
involved in the process of securing loans through mortgage.
There are several types of mortgages available which can be undertaken by a person to
secure his much-needed loan. One of the kinds of mortgage which can be undertaken by a
person is mortgage by legal charge. In this situation, a person can mortgage his
personal property in lieu of a loan, while retaining the authority to be the legal
owner of his mortgaged private possessions. However, this also allows the creditor
(financial institution) to access the right to exercise the power of their security and
sell/lease the house, if the debtor fails to repay the loan in pre-determined time.
A financial institution or the lending company which gives out the loan to an
individual generally resists taking chances and gets the financial deal registered in
public records so as to remain on the safer side. Also, the lending institutes insist that the property proposed by the debtor is not already given out for some other form
of loan and is free from all legal hassles.
There are two types of documents included in the mortgage loan. These include mortgage
deed and deed of trust. The deed of trust can be described as a legal deed by the
borrower to a trustee which is given out at the time of securing the loan. The deed of
trust follows no standard and varies from deal to deal. Most of the mortgages are
referred as legal deed of trusts officially.
The other way of mortgage is mortgage by demise. In this scenario, the creditor i.e.
the lender company becomes the official owner of the property, in case the debtor dies
within the repayment period i.e. if the debtor dies before being able to repay the
entire loan, the lender company becomes legally entitled to sell the land to recover
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