Mortgage and Its Types: Explained
Introduction: A mortgage is a plan in which a property like land, house or a building is used as a guarantee to get a money through a loan. A mortgage is a transfer of a right to stable property for the security purpose of a loan amount. A mortgage is used in an agreement between two parties i.e. a debtor one who takes a loan and the creditor who gives a loan. If the debtor does not pay the loan amount a creditor take right on the mortgaged property. A mortgage is a method which used to create a charge on property by contract. By using mortgage, one can easily get a property without paying full value. Types of mortgage Simple Mortgage In a simple mortgage, mortgagor makes a promise to himself to pay the mortgage money and agree that if he fails to pay a loan amount, a mortgagee will have right to sell the mortgaged property and cover the loan amount. Mortgage by conditional sale In a mortgage by conditional sale, there is some condition put at the time of the agreement between the m