What is mortgage and how it works
by admin on 29/11/08 at 7:45 pm
When you sign a mutual security need and then bought the house itself can serve as collateral to cover the debt that we opened. The mortgage is a lien and allows the creditor to expropriate the owner of the property and forced to sell the item in question. Be careful though, this does not mean that the creditor becomes the owner of the property, but the claim will be covered from the sale of the property.
If in fact the auctioning of the property is obtained a larger amount of money, compared to debt, will be returned to the rightful owner.
The mortgage may be conducted on any property registered and display the presence of a mortgage on the register. The well is covered by the law of discipleship, or the mortgage follows the property. So do a lot of attention in the purchase of a building: if you buy a property covered by mortgage, the mortgage and still goes to you.
But here’s how you can extinguish it (wikipedia):
Extinction
The mortgage is extinguished by his removal from the register. Also for the cancellation should be a title:
- The termination of the guaranteed
- The waiver and expressed in writing by the creditor
- The forced sale of the thing mortgaged
- The perimeter of the thing (see the heading of company guarantee)
- The expiry of the twenty-year term without renewal
The keeper of the records can not proceed with the cancellation.
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