House liens {mortgage} can be security for loans to buy houses. House buyers {mortgagor} pay moneylenders {mortgagee}. Mortgages have an indebtedness note and a property lien for debt security. Not making payments {default} cancels mortgage. Lenders have right to dispose of property by foreclosure, under court supervision, to recover lent money. Foreclosure proceedings have statutes.
types
Liens can have primacy {first mortgage}. Mortgages {open-end mortgage} can allow borrowing money in future without rewriting mortgage. Mortgages {packaged mortgage} can include household appliances, furniture, carpeting, and finance charges. Mortgages {construction mortgage} {home improvement mortgage} can require lender to pay costs to builder as construction stages complete. Mortgages {purchase money mortgage} {vendor's lien} can require purchaser to pay seller directly over a number of years.
title
States can give mortgagee title to property, but title cannot transfer until mortgagor completes payments and gains title {common law title theory of mortgage}. Most states give mortgagor title. For defaults, mortgagee has a property lien and right of foreclosure {lien theory}.
time
Loan length is typically 15 or 30 years.
insurance
Lender can require private mortgage insurance (PMI), to repay loan in case of job loss or other problem. Federal Housing Authority (FHA) and Veterans Administration (VA) can guarantee mortgages.
taxes
Mortgage interest payments are deductible from federal and state income tax.
Practical Affairs>Legal Affairs>Property>Housing>Buying>Mortgage
7-Legal Affairs-Property-Housing-Buying-Mortgage
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Date Modified: 2022.0224