What is mortgage
Mortgage is a pledge from the Mortgagee that in case of default, he will give up his claim over the property to the Mortgagor. The legal term for pledging is that the Lien. Mortgage agreement also called as Mortgage Deed or Mortgage Contract.
Mortgage agreement is a contract between the lender and the borrower where a lean is created over the subject matter (mostly Property) in order to secure the repayment of the loan amount. The Lender is the Mortgagee and the Borrower is called the Mortgagor. The mortgagee agrees to lend money to the mortgagor by receiving the lien over the property. The mortgagor continuous to hold the possession over the property. If in case the mortgagor fails to repay the loan, this agreement shall gives the mortgagee a right to take over the property and sell the same in order to recover the money due.
Essentials on Mortgage agreement
• Mortgagee pays money to the mortgagor.
• Mortgagor creates a lean over the property favouring the mortgagee.
• Possession remains with the mortgagor.
• If the money due is pay, the mortgagee should release the lean over the property.
• In case, On default, the mortgagee shall take the possession and claim the loan due by way of selling it.