Wichita Home Buyers, Mortgage Basics

Posted on May 3, 2008 by Rebecca 
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This article is hopefully going to explain many of the things Wichita home buyers believe about mortgages that are actually false. A mortgage home loan is not for example a standard loan, nor do rules regarding loans refer at all to it.

The mortgage is a legal contract between the mortgagor who is buying the property and the mortgagee, the person supplying the finance and security against the property. This is in fact the document which ensures the financing of the property is safeguarded until the end of the term, usually twenty five years.

The facility that a mortgage creates means individuals and companies can acquire land or property without needing the full face value to purchase it at the time. Although this article is brief, below are points that will help more in the understanding of how this system operates.

Being the financier, the mortgagee is the person who lends funds to the mortgagor or borrower. The document itself produces a lien on your property which is not cleared until the debt is paid.

This is the collateral or the security for the mortgagee who has provided the security instrument. Records of this are normally kept in the public records section of the county courthouse or a similar establishment.

This is now a recorded legal agreement and cannot be reversed until the full balance of the debt is cleared. Even if your property is mortgaged, you still own the property wholly and completely and nobody else, not even the mortgagee has title to the property.

This means the only occasion that can arise whereby the mortgagee can legally sell your home is if you stop making payments and it needs to be sold to repay the finance used to purchase it. This process has many names and in the United States it is referred to as foreclosure but this does need to go through the courts.

This is a further step but it is a legal formality which needs to be taken and is often referred to judicial foreclosure. This is the subject in brief and while there is a great deal more to it, perhaps this will help to clear up any ambiguities you may have previously experienced.

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