How Motgages and Tax Liens Properties Work
This article is hopefully going to explain many of the things people believe about mortgages and tax lien properties that are actually false. The worst thing to call one is a mortgage home loan and while this expression is in common usage, it is totally incorrect.
The terms mortgagee (the financier) and mortgagor (buyer), are part of a legal contract (mortgage) which uses the property as security on the debt. To safeguard the interests of the lender, this document provides a form of security in the event the debt cannot be repaid.
The mortgage has made it possible for people and companies to buy properties with only a small percentage of the purchase price as a deposit. There are also misconceptions about how they work so below is a description of how the process works.
Unfortunately it is our own common use of word like Borrower and Lender that has mislead people into thinking a mortgage is a loan when they should be referred to as Mortgagor and Mortgagee respectively. The document itself produces a lien on your property which is not cleared until the debt is paid.