What is a Mortgages?
The word "mortgage" in daily usage is most often used to mean mortgage loan. A mortgage loan is a loan which is guaranteed by real property through the use of a mortgage note which marks the presence of the loan and the responsibility of that validity through the granting of a mortgage which protects the loan.
The word mortgage is a French Legal term which means "death contract". The pledge terminates when the agreement is fulfilled otherwise the property is taken through fore-closure. A home buyer or builder can receive loan to purchase or secure against the property from a legal financial company, such as banks or credit offering unions, as a choice directly or indirectly through agent, middle person or intermediate. Elements of mortgage loans are, the size of the loan, capability of the loan, interest ratio, method of return back the loan and other attributes can variegate considerably. Hope so, now you can understand that what is mortgages?
Foreclosure
In most jurisdictions, a lender may foreclose the mortgaged property if certain conditions - principally, non-payment of the mortgage loan - occur. Subject to local legal requirements, the property may then be sold. Any amounts received from the sale are applied to the original debt. In some jurisdictions, mortgage loans are non-recourse loans: if the funds recouped from sale of the mortgaged property are insufficient to cover the outstanding debt, the lender may not have recourse to the borrower after foreclosure. In other jurisdictions, the borrower remains responsible for any remaining debt.
In virtually all jurisdictions, specific procedures for foreclosure and sale of the mortgaged property apply, and may be tightly regulated by the relevant government. There are strict or judicial foreclosures and non-judicial foreclosures, also known as power of sale foreclosures. In some jurisdictions, foreclosure and sale can occur quite rapidly, while in others, foreclosure may take many months or even years. In many countries, the ability of lenders to foreclose is extremely limited, and mortgage market development has been notably slower.
Foreclosure Source: