Home Mortgage Loans which are an advancement of funds from a lender, called the mortgagee, to a borrower, called the mortgagor, is secured by real property and evidenced by the document called a mortgage. In this arrangement, the money is used to purchase the property which is secured by the equity of the real estate. The financial institution is given a lien on the title until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the property and sell it to recover the funds it is owed. The mortgage sets forth the conditions of the loan, the manner and duration of repayment, and the right of a mortgagee to repossess the pledged property if the borrower or mortgagor fails to repay any portion of principal and interest.
Monday, December 20, 2010
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