What is a fair mortgage?

A fair mortgage is a type of mortgage loan agreement in which the creditor possesses all documents related to assets that will be purchased with the revenue of the loan. As a title holder of the title documents, the creditor has the ability to establish assets if the default values ​​of the mortgage loan should be held. This includes the ability to declare a loan for failure, seek the closure of property in court and finally sell the property for the purpose of handling an outstanding debt.

The fair mortgage process usually includes a house owner looking for a type of financing from the creditor. In order to ensure the financing of the house, the house introduces the property as security or securing the loan. The owner will also offer all the title documents to the creditor who will keep them for the duration of the loan. Once the pending balance is compensated in full, the documents are returned and the creditor gives up all the requirements for the property.

If the debtor should not make payments from a fair mortgage, the creditor has the right to declare a failure loan and seek compensation through the court system. On the basis of a court granted to the creditor ownership of the property, the assets may be sold in order to settle any remaining debt. At the discretion of the creditor, the property can be sold and used as a rental property. Depending on the real estate laws that apply in the jurisdiction in which the property is located, all sales revenues may go to the creditor, even if the property is sold for the amount beyond the outstanding loan balance. In other jurisdictions, the judicial decision may invite the debtor to receive anything that remains after the debt settlement and all court costs are paid from the sales return.

tkoncept of a fair mortgage is somewhat different from other means to introduce collateral for a mortgage loan because the creditor holds the title documents under control po the duration of the loan itself. The record owner is still responsible for paying any real estate taxes and for the management of real estate maintenance during the loan period and cannot try to sell the property without the creditor's consent. Once the fair mortgage is paid in full, the title documents are returned to the owner, who can then maintain or dispose of the property as it considers appropriate.