Write short note on Mortgages

Question

Write short note on Mortgages?

Answer 1

The purchase of real property often requires financing. A mortgage is an interest in land that provides security for the repayment of that debt.

At common law as security for a debt a mortgage is a carriage of an interest in land. If repaid a debt as promised, the conveyance becomes void, and the interest in land reverts to mortgagor (borrower). If the debt is not repaid, the land becomes the property of the mortgagee (bank), subject to the right of the mortgagor to redeem (the grace period the courts allow a defaulting mortgagor is known as the equity of redemption). Under the land titles system, mortgages (called charges) are not conveyances of the legal title but are liens upon the land. If the debt is not repaid, the mortgagee must start foreclosure proceedings to gain title to the land.

Normally, a mortgagor promises to repay the amount borrowed plus interest at specified times, to maintain adequate insurance on the land and buildings, to pay the taxes, and to keep the buildings in a proper state of repair. In turn, the mortgagee promises to discharge the mortgage upon payment in full and to allow the mortgagor quiet enjoyment of the land as long as it is in good standing.