different variois and many of mortgages.pptx

mmortgages defuined

1. Kinds of mortgages

2. What is Mortgage? 1.  A temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt. 2.  A contract or deed specifying the terms of a mortgage. 3.  The claim of a mortgagee upon mortgaged property. tr.v .   mort·gaged ,  mort·gag·ing ,  mort·gag·es1 .  To pledge or convey (property) by means of a mortgage. 2.  To make subject to a claim or risk; pledge against a doubtful outcome:  mortgaged their political careers by taking an unpopular stand.

3. Basic concepts According to Anglo-American  property law , a mortgage occurs when an owner pledges his or her interest (right to the property) as  security  or  collateral  for a loan. Therefore, a mortgage is an  encumbrance  (limitation) on the right to the property just as an  easement  would be, but because most mortgages occur as a condition for new loan money, the word  mortgage  has become the generic term for a  loan  secured by such  real property . As with other types of loans, mortgages have an interest rate and are scheduled to  amortize  over a set period of time, typically 30 years. All types of real property can be, and usually are, secured with a mortgage and bear an interest rate that is supposed to reflect the lender's risk.

4. Mortgage lending is the primary mechanism used in many countries to finance private ownership of residential and commercial property (see  commercial mortgages ). Although the terminology and precise forms will differ from country to country, the basic components tend to be similar.

5. Simple mortgage The salient features are: (a) The mortgagor undertakes personal liability for repayment. (b) no possession of mortgaged property is delivered. (c) on mortgagor’s default in making payment mortgagee is entitled to cause mortgaged property to be sold.

6. (d) there is no foreclosure of the mort. Property. (e) no power of sale out of court. Power to sell is only obtained on a decree for sale being obtained. (f) the mortgage must be effected by a registered deed even if the consideration is below Rs. 100/-.

7. What is foreclosure? The  legal   process  by which an owner's right to a  property  is terminated, usually due to  default . Typically involves a  forced sale  of the property at  public auction , with the  proceeds  being applied to the  mortgage debt .

8. Mortgage by conditional sale The salient features are: (a) the mortgagor ostensibly sells the mortgaged property. (b) the stipulation being that the sale shall be absolute in default of payment by a particular date or that the sale shall be void on payment by a particular date and the property retransferred.

9. (c) the remedy of the mortgagee is by foreclosure and not by sale. (d) the mortgage must be by registered deed if the consideration is Rs. 100/- or more. If the consideration is less than Rs. 100/- registration is optional but delivery of possession is necessary. (e) the transaction must be embodied in a single deed.

10. Usufructuary mortgage The salient features are: (a) there is delivery of possession of the mortgaged property to the mortgagee. (b) the property remains in the possession of the mortgagee till full repayment. (c) the profit of the property is appropriated by the mortgagee towards liquidation of the advance.

11. (d) the property is returned when the amount due is personally paid or discharged by rent and profits received. (e) there is no remedy by sale or foreclosure. (f) the mortgage must be effected by a deed registered if the consideration is Rs. 100/- or more. If it is less then registration is optional but delivery is essential.

12. English mortgage The salient features are: (a) the mortgaged property is transferred absolutely by the mortgagor to the mortgagee. (b) there is a personal covenant to repay on a certain date. (c) there is a stipulation for its retransfer in case of repayment of the loan.

13. (d) the remedy of the mortgagee is by sale and not by foreclosure. (e) power of sale out of court is conferred on certain persons under some circumstances (see Section 69)

14. Mortgage by deposit of title deeds The salient features are: (a) such a mortgage is only created in the towns of Kolkatta , Chennai, Mumbai and in any other town which the state government may, by notification in the official gazette, specify. A number of towns and cities have been specified. (b) it is created by delivery of the material title deeds in respect of the mortgaged property to the mortgagee; no delivery of possession of property takes place.

15. (c) it is made only for the purposes of securing a past debt or advance or to cover future advances. (d) no registration is necessary even if there is a written record of the deposit. (e) the remedy is by sale and not by foreclosure. (f) all the provisions relating to a simple mortgage apply to an equitable mortgage.

16. Anomalous mortgage The salient features are: (a) a mortgage which is not of the 5 kinds enumerated above is an anomalous mortgage. (b) it may be a combination of two or more kinds of mortgages. (c) the remedy is by sale or foreclosure depending on the terms of the deed (d) if the mortgage is for a consideration of rs . 100/- or more, the deed must be registered, if below Rs. 100/- delivery of possession is essential, registration is optional.