What is a mortgage?

A mortgage is the set of a personal loan and a mortgage on a property. The mortgage is a security consultant, whose validity is subject to the loan. The loan is a contract whereby the bank or entity a sum of money supply and regulates the form (term, interest, collateral, etc.) in which the borrower has to return it.

The security of the mortgage includes both the capital amount of the loan, including any interest, costs and expenses in case of legal representation for cases of non-payment of dues.

Characteristics of a mortgage : The mortgage will remain, but reduce the loan guarantees, even though this is fully paid. Until it was canceled, with the express consent of the financial institution through cancellation deed filed in the Land Registry, the mortgage does not go away, but not be nothing of the loan.

Contract as it is, must necessarily in deed, if given before a notary, and then enroll in the Land Registry to be valid. A mortgage does not prevent the housing may be sold to another person, but always bearing in mind that if the new buyer can assume the loan requires the consent of the financial institution with whom he was formalized. If it (the company or bank) does not give his consent in case of default on the loan the first buyer personally liable for the debt.

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