Mortgage is something which is gives as a security or even as a guarantee of repayment of the money taken. Mortgage can be done of only immovable property; it cannot be done of movable property. Mortgage is type of loan only as here also money is lended and any immovable property is kept as guarantee against that money. There are various types of mortgages to facilitate the person taking mortgage. Before entering into the contract of mortgage, one should study all types of mortgages and then find the one suiting with the needs and requirement. It’s good to get knowledge about every single type of mortgages so that you are not fooled and you can avail the benefits relating to every types of mortgages. Here are some of the types of mortgages, check them out and pick the one most applicable to your needs.
In case of such types of mortgages, the possession of the property which is mortgaged is not transferred to the mortgagee The mortgager agrees to the condition that the possession of the property will be with him and he will pay the amount of the mortgage on time and in the event of failing to pay the mortgaged money the mortgagee will be availing with the right to sell the property and generate the money out of it. If there is excess money generated from the selling of the property then it should be transferred in the favor of the mortgagor. Mortgagee cannot keep the any amount in excess of the one which is mortgaged to him.
In such types of mortgages, the mortgager agrees to pay off the amount of mortgage on a certain specific date. Here the property is transferred wholly in the favor of mortgagee. Here there is a condition to transfer the property back in the favor of the mortgagor on the repayment of the full amount of mortgage in favor of mortgagee. The mortgagee cannot sell the property till the specific date agreed between the mortgagor and the mortgagee.
In such types of mortgages, the mortgagor delivers the possession of the property in favor of mortgagee. Such transfer can be either expressly or it can also be impliedly. The mortgagee has to retain such possession till the payment of the mortgaged money. The mortgagee is also allowed to take any of the income or any interest from such property like rent or any such thing. This can be considered as a way of payment of the mortgaged money. The property is transferred back in the name of the mortgagor when the payment of mortgage money is done.
Mortgage by deposit of title deeds
In such types of mortgages, the mortgage deposits the title of the immovable property and delivers it to the agent or the creditor. Such transfer is for the intention of creation of security of repayment. There is no stamp duty to be payable in such type of cases.