Understanding Mortgage
A mortgage is a security instrument mostly used in relation with loans for the purchase or further improvement of real estate property. The document is then recorded in the public record and it becomes a lien on the property.
There are always two parties to a mortgage: A mortgag or-is the property seller and a mortgag ee- is the buyer/lender.When the mortgagee plans to loan money to the mortgagor, the mortgagor will have to sign a promissory note for the amount of money borrowed, and then “gives” a mortgage to secure the debt. So, mortgage is a written instrument that secures the loan by impeding the title to the property.(Source:http://rhol.com/rental/mortgages.htm)
(Photo source:http://www.acclaimimages.com/search_terms/mortgage.html)
