Mortgage is an economic term that means the purchase of a property with borrowed money, by showing a mortgage, holding sale, mortgage sale, pledge sale or mortgage itself as security. United States Mortgage about…
What is Mortgage?
Held sales are generally used for purchases of real estate (mostly buildings). In such sales, monetary institutions retain the power to confiscate immovable property until the amount lent (loan) is repaid. This mortgage is a security for the money loaned by monetary institutions. This method allows natural or legal persons to take the property, pay in parts within a period of usually 15-30 years, and eventually own it completely, even if they do not initially have the money to be worth the value of an immovable property. Once the payment is complete, the tutu status disappears.
Mortgage Pay Back
The amount borrowed depends on the borrower’s repayment capacity (usually calculated after subtracting expenses from monthly income) and the “Immediate Redeemable Value” of the immovable property to be purchased. The “Immediate Redeemable Value” is usually between 75% and 90% of the value of the property and corresponds to the amount at which the property can be immediately sold by the monetary institution if the debt is not paid. In case of delay in payments, monetary institutions may request the sale of the held property in order to collect the entire remaining debt, and in case the sale cannot meet the debt, they reserve the right to pursue execution proceedings against the debtor.
United States Mortgage Industry
The mortgage industry of the United States is a major financial sector. The federal government created several programs, or government sponsored entities, to foster mortgage lending, construction and encourage home ownership. These programs include the Government National Mortgage Association (known as Ginnie Mae), the Federal National Mortgage Association (known as Fannie Mae) and the Federal Home Loan Mortgage Corporation (known as Freddie Mac).
In the United States, the mortgage loan involves two separate documents: the mortgage note (a promissory note) and the security interest evidenced by the “mortgage” document; generally, the two are assigned together, but if they are split traditionally the holder of the note and not the mortgage has the right to foreclose. For example, Fannie Mae promulgates a standard form contract Multistate Fixed-Rate Note 3200 and also separate security instrument mortgage forms which vary by state.