Mortgage is one more type of Loan. In simple term when buyer takes the loan from lender against his/her property, it’s called mortgage. Mortgage is well known as the transfer of an interest in property by owner to a lender as a security for a debt.
Mortgage is a security for the loan that the lender makes to the borrower for a precise period of time.
Parties in Mortgage:
In Mortgage two parties are found.
Also known as mortgagor is the party which takes loan is called buyer.
Also knonwn as mortgagee is the party which gives the loan is called lender.
Types of Mortgage:
Normally there are three type of mortgages are stands –
It is the most common type. In few areas, a mortgage creates a lien on the title to the mortgaged property. Foreclosure of that lien almost always requires a judicial proceeding declaring the debt to be due and in default and ordering a sale of the property to pay the debt.
* Deed of trust
In this kind of mortgage a third party is involved in the instrument called trustee. In here trustee takes the right of foreclosed the property if buyer unable to pay the dues in given time period.
The main difference between Mortgage and Deed of Trust is, it can be foreclosed by a non-judicial sale held by the trustee.
* Security deed
This mortgage instrument only use in the Georgia state of America. Unlike a mortgage, a security deed is an actual conveyance of real property in security of a debt.
Upon the execution of such a deed, title passes to the grantee or lender, however the buyer maintains equitable title to use and enjoy the conveyed land subject to compliance with debt obligations. This type of deeds must be recorded in the county where the land is located.