What is a mortgage?
A mortgage is a legal document you sign pledging your property as security for the loan the lender makes to you. A mortgage is executed in conjunction with the note which is your obligation to pay. A note and mortgage are often considered together when signed by the borrower at closing. Without a mortgage the lender would not have the ability to foreclose against the property in the event of default. All lenders require the borrower to sign both a note and mortgage.
A mortgage is a method of using property as security for the payment of a debt. Technically the term mortgage (from Law French, lit. “dead pledge”) refers to the legal device used in securing the property, but it is also commonly used to refer to the debt secured by the mortgage. In most jurisdictions mortgages are strongly associated with loans secured on real estate rather than other property (such as ships) and in some cases only land may be mortgaged. Arranging a mortgage is seen as the standard method by which individuals or businesses can purchase residential or commercial real estate without the need to pay the full value immediately.
A mortgage is a legal document that creates a security for a loan or other financial consideration, whereby, the registered vessel or share or a share of it is used as security. The person using the vessel as security and receiving the loan is called the mortgagor. The person taking the vessel as security and usually giving the loan is called the mortgagee. Only registered vessels can have mortgages recorded against them. For information on whether a registered vessel has a mortgage, please contact the Registrar at its Port of Registry. A certified or uncertified Transcript of Registry can also be requested from the port. For information on the appropriate fees, please refer to the Vessels Registry Fees Tariff. If the vessel has a name and a port written on the stern, it is a registered vessel. A mortgage is not permitted on licensed vessels.
