How a Mortgage Works and which goods can be mortgaged

The mortgage of a property is for the creditor one of the possible ways to guarantee your credit, allowing you to be paid that credit with preference over other lenders for the value of the mortgaged thing.

Mortgages may relate to immovable property (houses and land, for example) or similar things (for example, things like, for example, cars, aircraft, and ships) belonging to the debtor or to a third person (Thus a debtor can guarantee the payment of a debt to his creditor by offering the mortgage of the house of a friend who is willing to do so).

A Very common example of mortgage is the one asked by the banking institutions when they lend money to the people for the purchase of the house. They ask for the mortgage of the house itself to guarantee the repayment of the money lent.

Mortgage registration

The mortgaging of assets is subject to registration. Thus, for example, the mortgage of a house must be registered in the conservatory of the land registry, that of a car in the registry of the car registration, etc. Failure to register the mortgage has Consequence to be considered non-existent, which means to stay the creditor devoid of any guarantee.

How to assert the right of the mortgage lender

He who has secured his credit by mortgage, whenever the debtor does not pay the debt, must sue him for the sale of the mortgaged property, thus obtaining the money to settle the debt.

Mortgage Species

The overwhelming majority of mortgages are voluntary calls, which designates them as the creditor and debtor in it agree freely. A bank that lends money to a person may refuse the loan if it refuses to mortgage, but to buy the house, it can not be forced to mortgage it. Because it is an agreement, in addition to a contract, as such voluntarily entered into by the contractors, this mortgage is called voluntary.

Another kind of mortgage is the judicial mortgage. It is permissible for the creditor to obtain a judgment against the debtor. Even against his will; The debtor can do nothing to avoid this mortgage. The judicial mortgage registration will be made, in this case. Based on a certificate of the judgment handed down by the court. There is a third kind of mortgage, called legal, because it is the law itself that understands necessary to guarantee certain creditors, indicating what they are. That is how the State has a legal mortgage on the property of individuals as a guarantee of payment of the respective property tax. Similarly, the minor or spouse to whom the parent or other spouse was liable to pay a monthly maintenance allowance shall be legally lien on the debtor’s assets to guarantee the value of the respective pensions.

Mortgage and credit privileges

It was said that the mortgage allows the mortgage lender to be paid before the other creditors. That’s the rule. But there are exceptions. These are so-called credit privileges, which allow certain creditors to be paid even to the mortgage lender. The State, for example, benefits from this privilege to guarantee its personal tax credits, as workers also enjoy an opportunity for their work credits of the last six months, among other cases that the law lists.

Purchase of mortgaged goods

Those who buy, for example, a property that is mortgaged is obliged to settle the mortgage debt. For this reason, it is simple prudence for the purchaser of the property or an equivalent property to ensure that there is no mortgage on the property in question. It is common practice to include in the deeds of purchase and sale of real estate a clause Stating that the purchase is made free of any charges, charges or liabilities of any nature. The land registry office, for example, informs interested people about the possible existence of mortgages (there may be several) on a property.