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However, mortgages (legal and equitable) are nonpossessory security interests. Normally the party granting the mortgage (the mortgagor) will remain in possession of the mortgaged asset. [e] The holder of a legal mortgage has three primary remedies in the event that there is a default on the secured obligations: they can foreclose on the assets,
In a typical mortgage loan transaction, for instance, the real estate being acquired with the help of the loan serves as collateral. If the buyer fails to repay the loan according to the mortgage agreement, the lender can use the legal process of foreclosure to obtain ownership of the real estate.
Here’s how mortgage liens work, the difference between voluntary and involuntary liens and how you can make sure your mortgage lien doesn’t become a problem. ... When the collateral, such as a ...
Mortgage underwriting is the process a lender uses to determine if the risk of offering a mortgage loan to a particular borrower under certain parameters is acceptable. Most of the risks and terms that underwriters consider fall under the three C's of underwriting: credit, capacity and collateral.
According to Anglo-American property law, a mortgage occurs when an owner (usually of a fee simple / freehold interest in real property, but frequently leasehold in England and Wales) pledges his or her interest (right to the property) as security or collateral for a loan. Therefore, a mortgage is an encumbrance (limitation) on the right to the ...
Reverse mortgages — Type of loan for homeowners ages 62 and older to borrow against their home equity, using their home as collateral ... But your home equity actually is the difference between ...