- Click Here To Find Out More About:
- Mortgage Broker Willoughby
By Syd Z. Nohcud
Most consumers as well as many businesses no doubt over time and finances acquire real property by paying for this over a long period of time. Simply as well as put in it basics and origins in law and finance the provider of the funds the provider of the funds to purchase the property or properties will hold the or technically a Mortgage on it, a mortgage being a lien or charge against the title to the property until that loan has been specifically paid off in full or other terms of finance or stated agreement met and fulfilled. One last point to note that the specific term Mortgage refers specifically to real property ( land) whereas a lien or charge specifically other types of assets is referred to in law and finance as a Chattel Mortgage .
Hypothetically there is no upper limit to the number and varieties of mortgages which can be held against a piece of property or real estate. All rank in order of priority of legal registration against the title records held in various land registry offices or similar arms of city, state, provincial or federal government offices and records.
The mortgage document itself may also in addition specifically list the order of ranking or rank in sequence. In order the earliest mortgage registered is termed the First Mortgage , and the second the Second Mortgage . A registered mortgage takes full and total priority over succeeding ones that is it is entitled to full satisfaction before the next succeeding mortgage agreement in turn has any claim what so ever and to what ever purpose and terms. This does not mean that the holder of a Second Mortgage cannot receive any or all payments against it while the First Mortgage in itself is also being paid.
What this does entail and mean however is that in the event or events of default by the borrower, the holder or holders of the First Mortgage will have to be paid entirely in total and full before the holder of the Second Mortgage can expect to legally receive any funds what so ever. Thus in real and practical terms there is a real , as opposed to a hypothetical upper limit, in real and practical terms to the number of mortgages to the number and variety of mortgages that can be held due to and in due respect to the risks that borrowers of funds involve and will shoulder and bear. In today s world and financial communities that while Second Mortgages are still common and even popular, succeeding ones are not, although in land boom periods and boom town economic situations it is not totally uncommon to even have up to five in number. However all in all this is both a rare and exceedingly exceptional event especially in light of the current economic and financial state of the nation and specific communities in this time frame of 2010 / 2011.
All in all much of the current state of our wealth and holdings of members of our societies and indeed standard of living are based on the concepts of long term mortgages for property and real estate being purchased through the financial instruments of mortgages. Some consider mortgages a bad thing even a curse whereas other feel that both they have use of the property while they live it , or entertain the holdings as an investment and thus the charges and interest payments they make are well justified.
About the Author: Syd Z. Nohcud
Vancouver British Columbia Lower Mainland Chev Buick Auto Sales Low Interest Rates – Easy Finance Terms Fill Out Online Application Today Appeal City of Winnipeg Property Tax Assessment
Source:
isnare.com
Permanent Link:
isnare.com/?aid=628136&ca=Finances