Articles

Basics of Mortgage Law

A mortgage is an interest formed in a land by an agreement and not a loan. In spite of the fact that nearly every mortgage contract includes an assurance to pay off a debt, a mortgage is not a debt of its own accord. It can be described as a proof of a debt. More significantly, a mortgage is a shift of equitable or legal interest in land according to sine qua non (a prerequisite) that the interest would be paid back when the terms and conditions of the mortgage agreement are carried out. A mortgage contract typically shifts the interest of the land of the borrower to the lender. Nevertheless, the transfer has a stipulation tied to it: if the borrower carries out the responsibilities of the mortgage agreement, the transfer gets annulled.