• Mortgage Deed

A mortgage deed is a legal document that provides mortgage lender a lien or the security interest with the property against the finance borrowed. For example - suppose you have borrowed some amount from a lender you have to sign a document giving the lender a lien on your property.

What is the signification of maintaining a mortgage deed?

The real purpose for signing a mortgage deed is to provide your lender a foreclose on your property in case you fails to pay the mortgage amount. Thus, in case you did not pay off the mortgage amount even after the 60 days behind, then the lender would foreclose it through selling your property to raise the money you have failed to payoff on the mortgage.

How does the mortgage deed work?

The mortgage deed is the process of transferring the title or at least the legal title of the property to the mortgage lender a security in case you could not make the full payment against the mortgage you have taken to buy the property. However, the lender has not right to do with the title unless other than the foreclose of the home.

What are the types of mortgage deed?

A lender can ask for either an actual mortgage deed or a similar document also called as the trust deed which acts as a lien on the mortgaged property. A trust deed is similar to what is stated in actual Mortgage. In fact the lender is given more flexibility with trust deed than that of the actual mortgage deed.

Every mortgage lender ensures to get the mortgage deed signed by the borrowers at the time of assigning the mortgage loan, though before the borrower actually receive the loan amount. A mortgage deed is basically a promissory note from the borrower to a lender to ensure the return of mortgage amount. Otherwise, the mortgage deed provides the full right to the lender to foreclose the property if the borrower breaches the promise.