Mortgage

What is Mortgage

A mortgage is the pledging of a property to a lender as a security for a mortgage loan. While a mortgage in itself is not a debt, it is evidence of a debt. It is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed. In other words, the mortgage is a security for the loan that the lender makes to the borrower.

Important Words and roles

Lender : The lender loans the money and registers the mortgage against the title to the property.

Borrower: The borrower gives the lender the mortgage as security for the loan, receives the funds, makes the required payments and maintains possession of the property.

The Deed of Trust: The deed of trust is a deed by the borrower to a trustee for the purposes of securing a debt.