What Is a Collateralized Mortgage?

Mortgage means that the mortgagor and the creditor enter into an agreement in writing, and do not transfer the possession of the mortgaged property, and use the property as security for the creditor's right. When the debtor fails to perform his debts, the creditor has the right to discount the property in accordance with the law or to be paid preferentially for the price of auctioning or selling the property. ^[1]

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Mortgage

Mortgage means that the mortgagor and the mortgagee (creditor) use

(1) The mortgagor and the mortgagee shall conclude a mortgage contract in writing. "

Property that can be mortgaged and not mortgaged

Mortgageable property

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(One)

One is the mortgagor and

In China, the mortgage system is implemented,

Selection of applicable objects

The scope of application of a mortgage loan is limited. Bank issued to basic customers

The private lending center has a lot of influence on the lending market. Since the private lending registration service center has issued a huge contract, through the excessively low transaction amount and high borrowing costs, the private lending market has been accused of being limited.

The key issue of private lending is collateral. Many access parties have a large demand for funds. Without collateral, it is difficult to effectively connect with many. Private lending is best done with

According to the current law lien provisions, lien can only occur in a few specific contractual relationships. Article 84 of the Guarantee Law stipulates that if the debtor fails to perform the debt due to the custody contract, transportation contract, processing contract, the creditor has lien. "Other contracts that can be lied by law are subject to the provisions of the preceding paragraph." Although the legislation restricts the occurrence of lien to a few types, in practice, there are a large number of cases where lien and mortgage are competing, and most of them are After the mortgagor first sets up the mortgage, the mortgaged property is handed over to a third party for repair, processing, transportation, storage, etc. It is very likely that the repair, processing, transportation, or storage costs cannot be paid off, resulting in a conflict between the lien and the mortgage . There are theoretically three different views on the effectiveness of the two when competing.

1. When the mortgage and the lien compete, the effect of the prior establishment shall prevail over the effect of the later establishment, and the effect shall take precedence.

2. Lien takes precedence. That is, no matter whether the mortgage is established or realized before the lien occurs, the lien holder can take priority over the mortgagee's compensation for the change in the value of the underlying object.

3. If the lien holder is in good faith, although the lien occurs after the mortgage right, its effect also takes precedence over the mortgage right; otherwise, its effect should be preceded by the previously established mortgage right.

Paragraph 2 of Article 79 of the Supreme People's Court's Interpretation of Several Issues concerning the Application of the "Guarantee Law of the People's Republic of China" adopts the second viewpoint. And the "

Land and property are held in banks, called mortgages. If you want to apply for land mortgage, most banks need you to find a qualified land price appraisal agency to evaluate the price of the land to be mortgaged. Then take the land certificate and evaluation report, together with the mortgage contract, mortgage application and loan contract signed by the bank and you, to the local Land and Resources Bureau for registration. Then take the mortgage procedure issued by the Land and Resources Bureau to the bank and complete the mortgage.