Kinds of mortgage Part 2

May 23, 2008 3:08 am editor More Information

Mortgage by conditional sale – The mortgagor sells the property to the mortgagee with the condition that the property will be restored to him by the mortgagee if the loan will be repaid. If the mortgagor couldn’t pay off the loan, the mortgagee owns the property. Because of its risky nature, bankers don’t consider this as a favorable security.

Usufructuary Mortgage – The mortgagor delivers the possession of the property to the mortgagee. The mortgagee is then entitled to rent out the property and receive income from it, such as rent, interest and profit. Upon repayment of the loan, the property is given back to the mortgagor. The title deeds remain with the owner.

English Mortgage – The mortgagor promises to repay the borrowed money upon a set date. Afterwards, the mortgagor transfers the property to the mortgagee however this is subject to the condition that the mortgagee will retransfer the property upon repayment before the date.

Mortgage by deposit of title of deeds – The mortgagor delivers the title document of the property to the mortgagee to create a security.

Anomalous mortgage – A combination of different types of mortgages.

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