Mortgage means a simple way to get the money by lending your property. There can be varied reasons for getting a mortgage and in similar manner there are also varied options for mortgage. When it comes to types of mortgage, people think there are there are no options and carry on with the one they know from years. But it is not true there are many types of mortgage which you are unaware of and you should probably have knowledge of. By going for the wrong type of mortgage and not paying it off in time, you can have a big loss and hence it is advisable to study in deep all the types of mortgage and then come to the conclusion as to which type of mortgage is fair enough and will be able to paid off by you in time. Here are some of the types of mortgage which can help you if you want to mortgage your property.
It is a type of mortgage where the possession of the property is not passed but still the mortgagor is impliedly liable to pay off the mortgage money and also have an implied acceptance that in case when he fails to pay the mortgage money in due time then the mortgaged property will be sold out and the proceeds will be taken off by the mortgagee. Here there is one benefit that the possession of the property is not transferred and hence the mortgagor can use the money along with getting the money to be used. Such type of mortgage is considered as simple mortgage.
Mortgage by conditional sale
It is a type of mortgage where the mortgagor ostensibly sells off the mortgaged property.
- On the condition that when there will be default in payment of money till the specific date, the sale will become obsolete.
- On a condition that when total payment of such mortgage is made, the sale will become void.
- On a condition that when the payment is made of the mortgaged property, the buyer will transfer the property back to the seller.
It is a type of mortgage where the mortgagor delivers the possession of the mortgaged property to the mortgagee and assigns him the right to retain such mortgaged property till the payment of the mortgage is not completed. Here the mortgagee can take any kind of profit or interest or rent arising from such property and consider as a part of the payment of the mortgaged money. Such type of mortgage is considered as usufractuary mortgage.
English mortgage is a type of mortgage where the mortgagor transfers the mortgaged property totally to the mortgagee and also transfers all the rights of the property in favor of mortgagee. But there lies a condition in such type of transfer that the mortgagee has to transfer the property back to the mortgagor when the payment of such mortgage is paid off. Such type of mortgage is known as English mortgage.