About Loans and Mortgages

What do you know about loans and mortgage bonds? Here are some things you probably didn’t know about before:

A mortgage bond has no value to the mortgagee if it does not receive cover for the sea when the property (mortgage object) is sold. In connection with the order of priority, one must be aware of the legal mortgage. Legalpant is a statutory mortgage right that gives the right to coverage in front of all registered mortgagees.

Relationship between the mortgage bond and the pledge statement

Relationship between the mortgage bond and the pledge statement

Unlike a mortgage bond, which can only be withdrawn with the help of the mortgage object itself, the debt is aimed at the loan taker. This explains why in connection with the mortgage, one must sign a debt note in addition to the mortgage bond and the pledge. The promissory note is a security which states that the borrower escapes to pay money to a named person or loan institution and regardless of whether a mortgage is secured in a property or whether the loan is secured in other ways. It is up to the borrower to ensure that the mortgage object (in this case the home) does not become a default (when the loan is not paid as agreed) to recover the mortgage. This way of establishing mortgages is called contract mortgages. Both debentures and mortgage bonds are kept with the creditor until the loan (s) has been paid in full.

A mortgage bond must be registered before it receives legal protection

A mortgage bond must be registered before it receives legal protection

Registration and priority A mortgage bond must be registered before it receives legal protection. By this is meant that it becomes valid as a compulsory basis. In this context, the compulsory basis is the mortgage agreement (the mortgage bond), which has legal protection under the Mortgage Act. Tsingsing The judge shall keep a diary of documents that are required for registration and a basic book of documents relating to real estate. Liabilities are listed on the applicable property in the ledger corresponding to the amount on the bond. Real estate is identified by farm number and use number. (A main property is denoted by farm number (no.). Use number (no.) Is the number of one of many properties separated from this main property.)

New loans are later secured with the same property

New loans are later secured with the same property

If a bond is the first listed on the property, we say it has the 1st priority. If new loans are later secured with the same property, the priority will be determined by the time they were registered. This means that the next mortgage bond will receive the 2nd priority and the subsequent 3rd, 4th etc. This mortgage arrangement of mortgage rights will first have consequences in the sale of the mortgage object. The first priority mortgagee will then have full coverage before the next in order will have his sea covered. And only when the 2nd priority mortgagee has received cover for his claim can the third on the list come with his sea. This is how it continues until everyone has received coverage, possibly as far as the sales amount goes.