Mortgage

A mortgage is pledging property to a lender as a collateral for a mortgage loan. While a mortgage is not really a debt, it is an evidence of a debt. It is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed. In other words, the mortgage is a security for the loan that the lender makes to the borrower.

If a borrower fails to satisfy or preform the terms made with the lender, the property is forfeited and the lender has legal right to repossess the land. The lender also has the right to re-sell the property in order to recover the sums owing to the property. The re-selling process it usually done through an open house where in the lender will invite interested buyers to the property and show them around.