logo

FINANCE AND SECURITY 4 Finance and Security Name of the Student Name of the University Author Question 1 Cool's Loan

   

Added on  2020-04-15

9 Pages1936 Words37 Views
Running head: FINANCE AND SECURITYFinance and SecurityName of the StudentName of the UniversityAuthor Note

1FINANCE AND SECURITYQuestion 1Cool wants to start a conveyance company and in this regard he took a loan fromSleazy against his property. Cool did not pay any money back to Sleazy after the promisedperiod crossed Sleazy can sell the property. In a mortgage by legal charge or technically "acharge by deed expressed into due by way of legal mortgage", Cool remains the legal owner ofthe property, but Sleazy (Giordano and Alces 2017) gains sufficient rights over it into enablethem through enforce their security, such as a right toward take possession of the property or sellit. In other words, the mortgage is a security for the loan that the lender makes into the borrower.It is a transfer of an interest in land (or the equivalent) from the owner toward the mortgagelender, on the condition that this interest will do returned into the owner when the terms of themortgage have been satisfied or performed.A mortgage is a security interest in real property held by a lender as a security for a debt,usually a loan of money. A mortgage in itself is not a debt; it is the lender's security for debt. Taxliens, in some cases, will come ahead of mortgages to protect the lender, a mortgage by legalcharge is usually recorded in a public register (Swan 2015).Since mortgage debt is often the largest debt owed by the debtor, banks and othermortgage lenders run title searches of the real estate property through make certain that there areno mortgages already registered on the debtor's property which might have higher priority. For this reason, if a borrower has delinquent property taxes, the bank will often pay them towardprevent the lien holder from foreclosing and wiping out the mortgage. A mortgage is the standardmethod by which individuals and businesses can purchase real estate without the need into paythe full value immediately from their own resources (Salmon 2016).

2FINANCE AND SECURITYThe mortgage loan is used for residential mortgage lending, and commercial mortgagefor lending against commercial property. In most jurisdictions mortgages are strongly associatedwith loans secured on real estate rather than on other property (such as ships) and in somejurisdictions only land may do mortgaged. So we can see that though Cool will be the real ownerof the property but as the Title deed of the property was under mortgage, in that case the Sleazywill generate enough right against the property so that he may sell the property or takepossession over the property. (Velencoso, Baile and Pradi 2017).In the case, Cool did not pay for the interest of the loan, since taking the property asmortgaged for starting on the business of conveyancing.Thus Sleazy can sell the property torecover the money which he had lend to Cool for the business. The loan should have been repaidby Cool but not a single instalment was paid by him till he was given the loan. Thus Sleazy cansell the property t recover the property (Korngold 2015).

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Creation of Legal and Equitable Mortgages in the UK
|9
|2661
|414

Core Principles of Mortgage and Remedies for Mortgagee
|12
|3184
|44

Real Estate Legal Terms Case Study 2022
|7
|2002
|27

Mortgage Adviser: Assignment
|7
|1739
|124

(Solved) Land Law : Assignment
|10
|2943
|44

The Student Name of the University Author
|11
|2556
|339