Question book-4.svg

Simple English Loans, the free encyclopedia

A mortgage is a way to use one’s real property as a guarantee for a loan to get money. Real property can be land, a house, or a building. Many people do this to buy the home they use for mortgage: the loan provides them the money to buy the house and the loan is guaranteed by the house.

In a mortgage, there is a debtor and a creditor. The debtor or mortgagor is the owner of the property, while the creditor or mortgagee is the owner of the loan. When the mortgage transaction is made, the debtor gets the money with the loan, and promises to pay the loan. The creditor will receive money back with interest over time (usually in payments made each month by the debtor). If the debtor does not pay the loan, the creditor may take the mortgaged property in place of the loan. This is called foreclosure.

In the 2008 American economic failure, creditors lent money to debtors who could not pay back that money. This lowered housing prices and hurt the economy.

Simple mortgage[change | change source]

Defined under Section 58(b) of the Indian Transfer of Property Act as a simple mortgage is a transaction whereby ‘without delivering possession (ownership or occupancy) of the mortgaged property, the mortgagor binds himself personally to pay the mortgage money and agrees, expressly or implicitly, that in the event of his failing to pay according to his contract, the mortgagee shall have a right to cause the mortgaged property to be sold by a decree (an order of law) of the court in a suit(a case in a law court) and the proceeds of the sale to be applied so far as may be necessary in payment of the mortgage money;There is no foreclosure of the mortgaged property. Normally a mortgage is to be registered if the mortgaged money is Rs.100 or more. Mortgage deed is to be executed and appropriately stamped ad valorem with two best available witnesses.

Read about:   Simple Brief Time period Loans For Small Companies

It can be said generally when the possession of the mortgaged property is not delivered, the transaction is simple mortgage.

English mortgage[change | change source]

The borrower promises to repay the borrowed money on a certain date. The borrower transfers the property to the lender. The lender will re transfer the property when the money is repaid.
The mortgaged property is absolutely transferred to the mortgagee.

English mortgage is a type of mortgage where the ownership of property is transferred to the mortgagor on a condition that the mortgagee will transfer the ownership on repayment of the loan, the title deeds are transferred to the mortgagee

Reverse mortgage[change | change source]

A reverse mortgage is a loan where the lender pays the monthly installments to the borrower instead of the borrower paying the lender. The payment stream is reversed. A reverse mortgage allows people to get tax-free income from the value of their home. They are mainly to improve older people’s personal and financial independence.

Usufructuary mortgage[change | change source]

In this form of mortgage, the property is given as a security to the mortgagee, who is let into possession or is permitted to repay himself out of the rents and profits of such property. Following Two points should be noted carefully with respect to Usufructary mortgage, that is (i) Possession must be given to the mortgagee, or the mortgagor must expressly or impliedly bind himself to deliver possession and (ii) The mortgagor will not be personally liable, unless there is a distinct agreement to the contrary.

The lender takes the property. The lender receives income from the property (rent, profit, interest, etc.) until the money is paid back. The owner keeps the title deeds with him.

Read about:   New Automotive or Truck Loans and Your Credit score Rating

9 thoughts on “Simple English Loans, the free encyclopedia

  1. Japonia Gospodarka says:

    Im extremely impressed with your writing skills as well as with the layout on your weblog. Is this a paid theme or did you modify it yourself? Either way keep up the excellent quality writing, it is rare to see a great blog like this one these days..

  2. Excellent post. Thanks pertaining to sharing these details. It’s really of great be an aid to me. From a person’s article, I know extra in this particular respect. I may continue paying attention to your write-up.

  3. Stumbled into this website by chance but I’m sure glad I clicked on that link. You certainly answered all the questions I’ve been dying to answer for some time now. Will undeniably come back for more of this. Thank you so much

  4. Raje Podatkowe says:

    I usually dont comment in Blogs but your article forced me to, amazing work.

  5. Submit Website says:

    Contrary to many views, better researched articles still fetch in reviewers like me. You demonstrated clear understanding of the subject matter and my sentiments are now complete after reading your post. Please hold up the solid work and i will subscribe to your rss feed to be advised of any future postings.

  6. Ekonomia Teoria says:

    Resources these as the 1 you mentioned right here will be incredibly useful to myself! I will publish a hyperlink to this web page on my personal blog. I am certain my site guests will discover that fairly helpful.

  7. I have been following posts. I perpetually find you articles enlightening.

  8. Wiertarki says:

    Thought I would comment and say great theme, did you code it for yourself? Its really superb!

  9. Rys historyczny alkoholizmu says:

    Found your site from a friends Facebook link, it seems that you have growing fanbase and I now undertsand why Super informative article, thanks a million.

Leave a Reply

Your email address will not be published.