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MORTGAGE


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Define Mortgage

  • A conditional conveyance of property as security for the repayment of a loan.
  • Put up as security or collateral. .

by WordNet 3.0 © 2006 by Princeton University

  • (v.t.) To grant or convey, as property, for the security of a debt or other engagement, upon a condition that if the debt or engagement shall be discharged according to the contract, the conveyance shall be void, otherwise to become absolute, subject, however, to the right of redemption.
  • (n.) State of being pledged; as, lands given in mortgage.
  • (n.) A conveyance of property, upon condition, as security for the payment of a debt or the preformance of a duty, and to become void upon payment or performance according to the stipulated terms; also, the written instrument by which the conveyance is made.
  • (v.t.) Hence: To pledge, either literally or figuratively; to make subject

    to a claim or obligation.

by Webster's Revised Unabridged Dictionary

mortgage is a legal document used to secure the performance of an obligation. The term mortgage, which is derived from the French words mort meaning "dead" and gage meaning "pledge" is appropriate in that the pledge is extinguished only after the debt is paid. In the usual real estate transaction, the buyer seeks to borrow money to pay the seller the difference between the down payment and the purchase price. When the lender (mortgagee) lends the money, the buyer/borrower (mortgagor) is required to sign a promissory note for the amount borrowed and to execute a mortgage to secure the debt. The purpose of the mortgage note is to create a personal liability for payment on the part of the mortgagor; the purpose of the mortgage is to create a lien on the mortgaged property as security for the debt.


Category: Hypothec

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