The ‘Transfer of Property Act 1882’ says “A mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability”.
To advance home loans and loan against properties, banks and HFCs (Housing Finance Companies) seek security in the form of mortgage of property to be funded. In case of default of loan repayment, lenders will have the legal right to enforce the security to order to recover outstanding debt along with interest and other charges.
As there are only two types are mortgages in practice, viz., mortgage by deposit of title deeds, and registration of memorandum of deposit of title deeds, let us analyse the pros and cons of both. The first is commercially known as ‘equitable mortgage’. Thanks to the simple, easy and less expensive procedure involved in creating ‘equitable mortgage’, today a majority of home loans are backed by equitable mortgage.
Benefits of doing this Online Course from IALM:
An equitable mortgage is a popular mode of securing a loan nowadays.
Other Important Information About This Online Course
|DIFFERENT TYPES OF MORTGAGES||6 Hrs|
|MORTGAGE BY DEPOSIT OF TITLE DEEDS||6 Hrs|
|RIGHTS AND LIABILITIES OF MORTGAGOR AND MORTGAGEE WITH||6 Hrs|