Vanilla Coke Blogging

Property Liens and Security Mortgages

April 28, 2008 3:15 pm admin Business

The property liens system works so successfully because the risk of loss on the part of the mortgagee is all but eliminated as they have legal possession of the property until the debt is completely repaid. This lien is recorded within public records likely to be found at a county courthouse or similar establishment. This act makes the purchase and the ownership of the house official and no-one can transfer this ownership until the debt is fully paid off. So how this works is that the mortgagor (you) owns the property completely even though the mortgagee has possession of the mortgage but not the title.

This means the only occasion that can arise whereby the mortgagee can legally sell your home is if you stop making payments and it needs to be sold to repay the finance used to purchase it. Should they need to reclaim these costs then the case will be held in court and the procedure called foreclosure will be started. This is done in order for it to be considered legal; this type of foreclosure is referred to as a judicial foreclosure. I hope this brief introduction has further helped your understanding of an important but often overlooked area of personal finance.