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05/29/06
by Lorilyn Lasells
D.R.K.B. Finance
To invest money upon a mortgage is to lend it to a person who has a house or landed property, and desires to borrow money at a certain specified rate of interest. The title deeds of the property are deposited with the lender of the money, together with a mortgage deed, which describes, in full detail, the terms which may have been agreed upon. If you are looking for a loan to consolidate your debt, you will need to qualify for the loan, just like any other loan. If you have a home, you may be able to get an equity loan using your equity or even go over the appraised value of your home in order to get the financing you need.
You may be able to qualify for an unsecured loan, which can consolidate your debt with one low monthly payment with no ties to any of your assets.
The interest is usually made payable monthly--yearly interest divided by 12 (number of month)--, and in the event of its payment not being kept up, or the lender desiring the return of his money, the principal sum can be called up, the lender giving notice of his intention to do so, as per contract. If the borrower fails to pay, a process of law has to be instituted, called a foreclosure suit, which, if successful, transfers the absolute ownership of the property into the hands of the lender, so that he can receive the rents as his own, or, if he pleases, sell the property under legal authority. In view of such a contingency the value of the property could considerably exceed the amount of the money advanced, so as not only to cover the principal sum, but also any arrears of interest, together with law costs and expenses. The usual proportion of an advance on mortgage varies (your credit rating plays a huge role here) of the ascertained value of the property, but there might be circumstances which would warrant some variation in the proportion.
The mortgage deed should be prepared by the lender's own solicitor, title company (depending on the country or state you live in) who would see that the property had a good title and use all the precautions necessary in transactions of this kind to guard against fraud and loss; and in many cases a professional valuation of the property would be desirable, as a preliminary, before the advance is entertained at all.
Cases have been known where fraudulent persons have borrowed money on mortgages of property conveyed to themselves, but as to which they were trustees only for others. The lenders or mortgagees have, in such cases, no alternative but to give up the deeds and submit to the loss of their money.
Debentures are a form of mortgage applicable to the raising of money by a corporation or joint-stock company.
The company mortgages its property for a certain sum, too large for a single person to advance, so it is divided up into even amounts of, say, £100 or $100 (or whatever your currency is), the money being secured by debenture bonds, bearing interest at a fixed rate, and being saleable in the stock markets.
About the author: Lorilyn's life has been up and down, just like the stock market. She finally realized that money isn't all, it is a good portion. She always says: You can't feed the poor without money to buy the food. After many struggles she has become money wise and shares her thoughts and experience at DRKBFinance.com Check out her Family Financial Planner as well while you are here.
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