Mortgage Law

Mortgage Law
A mortgage involve transfers an​ interest of​ the​ land as​ security for the​ loan or​ any other obligations,​ and the​ most popular method for financing the​ real estate transaction .​
The mortgager is​ one among party who transfer interest in​ lands or​ the​ borrower of​ loan,​ and the​ other party is​ the​ Mortgagee which is​ an​ financial institution ,​ or​ provider of​ a​ loan or​ interest provided in​ exchange of​ security interest
A mortgage would be repaid in​ instalments which will include principal amount along with the​ interest that has been borrowed ,​ when the​ borrower fails to​ make the​ payments will result in​ foreclosure of​ mortgage .​
Foreclosure of​ the​ mortgage will allow mortgagee to​ state the​ full mortgage debt that’s due,​ should be paid immediately,​ and this would be accomplished through the​ acceleration clause of​ the​ mortgage,​ and if​ the​ mortgager fails to​ pay after this declaration foreclosures of​ the​ home occurs that will lead to​ capture of​ security interest in​ turn lead to​ sale of​ the​ mortgage home for the​ remaining mortgage debts.

Foreclosures process will depend on​ the​ particular state law,​ as​ well as​ the​ term of​ mortgage of​ that state .​
The most popular processes are the​ court proceedings that are Judicial foreclosure or​ it​ will grant the​ power to​ mortgagee to​ sell off the​ property that is​ the​ power of​ sales foreclosure .​
Many states regulate the​ acceleration clauses,​ which will allow the​ late payments for avoiding the​ foreclosures.
There are 3 theories that exist concerning who has the​ legal title for the​ mortgaged property and under this theories,​ title theory is​ to​ security interest that rest with mortgagee,​ and most of​ the​ states follows lien theory,​ in​ this theory legal title remains with mortgagor and unless if​ there is​ foreclosures,​ and finally is​ Intermediate theory which will apply lien theory,​ and if​ there will be any default on​ mortgage,​ it​ will apply title theory.
Mortgagee and the​ mortgager has the​ right for transferring their appeal in​ mortgage,​ but some states holds that if​ purchaser of​ the​ home subject to​ mortgage do not openly take over mortgage Mortgagees employs due on​ encumbrance and due on​ sale clauses for the​ prevention of​ the​ transferring of​ the​ mortgages,​ and these clauses will allow acceleration that having the​ interest with principal gets due immediately.
The state statutory and as​ well as​ common law governs the​ laws of​ the​ mortgage .​
Mortgagees are being regulated by the​ state or​ Federal Law or​ any agency that depend on​ under whose laws they are established or​ chartered.

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