As the mortgagee, the lender has the right to sell the property to pay off the loan if the borrower fails to pay. The mortgage runs with the land, so even if the borrower transfers the property to someone else, the mortgagee still has the right to sell it if the borrower fails to pay off the loan.
When can mortgagee sell mortgaged property?
According to section 58(b), in a simple mortgage, the mortgagor assures mortgagee that he shall repay the loan amount and in the event of default, he shall bind himself personally to sell the mortgaged property and thereby repay the loan amount.
Can a mortgagee sell property without court order?
A mortgagee in possession may sell the mortgaged property. Provided (as would be usual), that there is a power of sale in the mortgage or the statutory power of sale in the Conveyancing Act applies, the property can be sold without a court order.
Can a mortgaged property be transferred?
A mortgaged property can even be transferred through inheritance. In case the owner has an untimely death and has not cleared the outstanding dues, then the mortgaged property will be passed on to his/her dependants, such as children and spouses.
Who is the legal owner of a mortgaged property?
Persons involved in Mortgage
The individual who mortgages his property against the loan is called “Mortgagor/Borrower.” While the individual/institution to whom the property is mortgaged is called “Mortgagee/Lender”.
Can you sell a mortgaged property Philippines?
Note as well that under Article 319 of the Revised Penal Code, under the title “Chattel Mortgage”, it is punishable for any mortgagor to sell or pledge personal property already pledged, or any part thereof, under the terms of the Chattel Mortgage Law, without the consent of the mortgagee written on the back of the …
Can you sell a mortgaged property in Monopoly?
When you mortgage a property in Monopoly, you turn the Title Deed card over. You’ll receive a refund of half of the property’s original value – the mortgage value is printed on the card. When the property is mortgaged, it’s inactive. … You can, however, sell a mortgaged property to another player in the game.
What does mortgage in possession mean?
A mortgagee who has exercised the right to take possession of the mortgaged property; this may happen at any time, even if there has been no default by the mortgagor. … The mortgagee must carry out reasonable repairs and must not damage the property.
What is a mortgagee in possession clause?
Standard Mortgagee in Possession Clause
Charge means a mortgage, charge or other security or loan documentation granting a security interest in the Affordable Housing Units and/or the Additional Affordable Housing Units (or any number of them) in favour of the Chargee.
Who is the mortgagee and who is the mortgagor?
A mortgagor is someone who borrows money to pay for their home. The mortgagor is often referred to as the borrower. A mortgagee is an entity that lends the mortgagor money. This entity is typically referred to as the lender.
Can you will a mortgaged house?
Assets, Debt and Death
If your loved one owned a home and owed a mortgage debt, you may inherit one or both. In any event, both must be addressed in probate by the executor and the court. Probate is a court-supervised process to deal with the estates of deceased persons.
Can a mortgaged property be used as collateral?
A house is most often used as collateral for business financing and to secure home equity loans and lines of credit. For a house to qualify as collateral, it must be free and clear of any liens such as a mortgage or at least have enough equity to cover the loan amount.
What can be transferred in mortgage?
(a) A mortgage is the transfer of an interest in specific immoveable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability.
What happens when you sell a mortgaged house?
When you sell your home, the buyer’s funds pay your mortgage lender and cover transaction costs. The remaining amount becomes your profit. … Your loan is repaid to your mortgage lender. Any additional loans (like a HELOC or home equity loan) are paid off.