The mortgage on a property is a guarantee taken in case of real estate credit granted by credit institutions. It comes as a guarantee of repayment of the loan. It allows in case of non-payment to cover the debt. What is it for ? What are the advantages and disadvantages ? How much does it cost ? So many questions that come into the choice of a guarantee for anyone wishing to make a real estate acquisition. http://dekarecords.com has examples
What is the mortgage on a mortgage?
A mortgage is a contract between two parties, the creditor (the bank) and the grantor (the borrower).
To validate this legal act, registration must be done with a notary. It mentions the nature of the property, the sum guaranteed (interest and capital) and the repayment period. The settlor is the owner of the property and the creditor enjoys a right of preference as well as a resale right.
In case of default of the debtor, the creditor is entitled to seize the property and proceed to the sale of it.
The mortgage allows the creditor to take, in exchange for the granting of a loan, a guarantee in case of non-payment of the installments. The bank then becomes the owner of the property and can sell it for a refund. This is called a stock guarantee, this one opposing the guarantee of flow.
The mortgage can be taken for a maximum term of 50 years and will only be exercised one year after the end of the repayment of the debt.
The advantages and disadvantages of the mortgage
The mortgage allows homeownership and is applicable to most real estate loans. This is a common transaction that automatically rises to N + 2 from the end of the refund. It helps to reassure the lender, or even increase the duration of the loan and thus lower the debt ratio.
It is a solemn contract that allows to give each party duties but also rights.
When the settlor opts for a mortgage, he may be led to feel aggrieved of his property in favor of the lender . Also remember that in case of default the bank becomes the owner of the property up to the amount of the remaining debt. The auction is done with the purpose of liquidating the debts and not to make a profit. If the sale does not cover the debt the constituent remains liable for the difference.
The cost of a mortgage in a mortgage
The overall cost of a mortgage includes several parameters:
The emoluments of the notary , that is to say the drafting work of the notary, established according to a precise scale;
The real estate security contribution which represents 0.05% of the amount borrowed increased by 20% and which is intended for Philip Careyment registration fees;
Registration fees plus a land registration tax of 0.715% taken on the guaranteed amounts plus 20%.