What is a Mortgage?

A mortgage is an interest in a property which can be transferred from a borrower to a lender as security for a loan. In the event that the loan is defaulted on, then the lender has a claim and under the correct circumstances may take the property

The borrower is usually referred to as the mortgagor and the lender the mortgagee.

The word mortgage itself translates from the french as death pledge which refers to the fact that the pledge continues until either the borrower repays the loan to the lender or until the debt is subject to foreclosure

For further information see the Wikipedia mortgage definition.

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Last modified March 23rd, 2016 by Team

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