Buying a dream home is the biggest investment that is done by many people all over the world. Only a few people have the cash to buy the home; however, many do not have cash with themselves. It doesn’t mean that they should not think about their dream house, or they should not plan on buying the house for themselves. There are mortgage lenders who are ready to give us a loan so that we can fulfil your dream of a beautiful house. One can say mortgages are a crucial part of the finances. One must check the mortgage lending laws and regulations before they decide to go for taking the loan.
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Basics of Mortgage Regulation
The mortgage lenders must follow the private mortgage lending laws as these laws tend to treat the borrowers and lenders fairly. These laws are designed to protect the relationships between lenders and borrowers. These lending laws restrict the lenders from disclosing any information about the borrower or regarding the loan taken by them. This law makes the lenders disclose the fees, interest rate, credit terms and other important provisions. The private lender law gives the borrower the right to cancel certain loan during a specific period of time.
We are talking about mortgage regulation, but there is one question that is what exactly mortgage loan are? The mortgage loan is the transfer of the interest to the immovable property to secure the payment of the loan. Every country has its own mortgage law; for example, Florida lending laws protect both the consumer and the lender during the mortgage loan.
Types of Mortgage
There are basically six types of the mortgage; however, all the lenders follow private money lending laws while giving any type of mortgage loan to the consumers.
- Simple Mortgage
In the mortgage loan, the mortgagor is bound to repay the loan himself. The mortgagee has the authority to sell the immovable property when they fail to repay the loan.
- Mortgage by Conditional Sale
This loan is the situation where the mortgagor has ostensibly sold the mortgaged property on few conditions. Those conditions include that if the payment is made, the sale of the property becomes void and the buyer will transfer the property to the seller once payment is made.
- Usufructuary Mortgage
This loan has following features like possession of the property will be transferred to the mortgagee. The mortgagor should incur no personal liability, and the mortgagee will get rent and profit on the basis of interest or the principal amount.
- English Mortgage
In this loan, the mortgagor is bound to repay the loan to the lender on a certain day. Till the time the payment is not made, the mortgaged property belongs to the lender, and once complete payment is made, then the lender will transfer in the name of the mortgagor.
Be it any mortgage loan you take you must abide by the private lender law. This law will protect you and your rights on the mortgaged property so that the lender cannot double-cross you.
