Understanding Mortgage

Understanding Mortgage



Understanding Mortgage
A mortgage is​ defined as​ a​ way in​ which property or​ jewelry is​ used as​ a​ security against the​ debt .​
The loan that is​ taken against mortgage is​ termed as​ ‘mortgage loan’ .​
This loan is​ taken in​ many countries mainly for the​ purpose of​ purchasing home or​ for wedding in​ the​ family .​
Mortgage can be taken from banks or​ money lenders in​ many countries .​
People involved in​ mortgage include-creditor,​ debtor and at​ times a​ legal representative .​
The term creditor can also be used synonymously with lender .​
Money lenders,​ insurers,​ banks or​ financial institutions are creditors who provide the​ money to​ the​ person in​ exchange of​ property or​ jewelry .​

A borrower is​ also known as​ debtor,​ obligor or​ mortgagor .​
a​ debtor gets the​ amount equal to​ the​ value of​ the​ mortgaged article .​
a​ mortgagor is​ required to​ abide by all the​ obligations or​ conditions of​ creditors .​
Or,​ else there are chances that as​ a​ way of​ recovering debt,​ the​ property may be taken away by the​ creditors .​
There are various properties as​ a​ result of​ foreclosure .​
These properties are available for reasonable costs for the​ other buyers .​

It is​ always that the​ legalities of​ mortgage are done under the​ supervision of​ a​ lawyer .​
All the​ conditions and the​ amount of​ money involved should be stated in​ written and signed by the​ creditors,​ debtors and lawyer present .​
It adds authenticity and removes any confusion if​ any .​
Currently many Certified Financial Planners work in​ combination with Certified Mortgage Planners so as​ to​ provide mortgage loans to​ financially sound people .​
In addition to​ creditors,​ debtors,​ legal representatives and government agencies,​ there is​ involvement of​ pension funds and life insurers .​
Terms involved in​ the​ legal process of​ mortgage loan are Disbursements,​ Mortgage Deed,​ Conveyance,​ Land Registration,​ Sealing Fee,​ Freehold,​ Leasehold,​ Seasoned mortgage and Legal Charge .​
Freehold is​ defined as​ the​ land and property ownership .​
Disbursements include all the​ money involved as​ search fees,​ stamp duty and land registry .​
Legal Charge is​ a​ document that has all the​ minute details of​ the​ land or​ property owner .​
Conveyance is​ the​ document that transmits the​ possession of​ unregistered property .​
Sealing Fee is​ paid when the​ creditor discharges the​ charge over the​ land .​
Land Registration is​ also referred as​ title .​
This document contains the​ details of​ the​ ownership of​ land and property .​
Seasoned mortgage is​ linked with secondary market .​
In seasoned mortgage payment is​ made on​ regular basis .​
Mortgage Deed is​ a​ document that gives detail of​ possession of​ ownership .​
Legal mortgage are of​ two kinds- Mortgage by legal charge and Mortgage by demise .​
There are essentially two types of​ legal mortgage .​
a​ lender becomes the​ legal owner of​ the​ mortgaged land till the​ money is​ paid in​ full .​
a​ lender is​ free to​ auction or​ sell the​ mortgaged property .​
While under Mortgage by legal charge,​ a​ lender can not sell the​ mortgaged land .​
He may possess the​ land legally but the​ right of​ selling and buying of​ the​ land lies with the​ debtor .​
Also,​ to​ provide safety to​ the​ lender,​ the​ details of​ mortgage are recorded in​ a​ register.




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