Property | Mortgage | Home Equity Loans
Property signifies dominion or right of use,
control, and disposition which one may lawfully exercise over
things, objects, or land. One of the basic dividing lines between
property is that between real property and personal property.
Generally, the term real property refers to land. Land, in its
general usage, includes not only the face of the earth but everything
of a permanent nature over or under it. This includes structures
and minerals.
There are further divisions within the real property classification.
The most important are freehold estates, non freehold estates,
and concurrent estates. (Others are future interests, specialty
estates, and incorporeal interests). Freehold estates are those
in which an individual has ownership for an indefinite period
of time. An example of a freehold estate is the "fee simple absolute",
which is inheritable and lasts as long as the individual and
his heirs wants to keep it. Another example is the "life estate",
in which the individual retains possession of the land for the
duration of his or her life. Non freehold estates are property
interests of limited duration. They include tenancy for years,
tenancy at will, and tenancy at sufferance. Concurrent estates
exist when property is owned or possessed by two or more individuals
simultaneously.
Mortgage
A mortgage is a document in which the owner guarantees a title
to real estate to a lender as security for a loan described in
a promissory note. To be enforceable the mortgage must be signed
by the owner (borrower), acknowledged before a notary public,
and recorded with the County Recorder or Recorder of Deeds. If
the owner fails to make payments on the promissory note then
the lender can foreclose on the mortgage to force a sale of the
real estate to obtain payment from the proceeds, or obtain the
property itself at a sheriff's sale upon foreclosure.
A purchase-money mortgage is one given by a purchaser to a seller
of real estate as partial payment. A mortgagor may sell the property
either "subject to a mortgage" in which the property is still
security and the seller is still liable for payment, or the buyer "assumes
the mortgage" and becomes personally responsible for payment
of the loan. California is one of 14 states that use a "deed
of trust" as a mortgage, in which the title is technically given
to a trustee to hold for a beneficiary.
Home Equity Loans
Home equity loans are often used to consolidate other debt with
higher interest rates such as credit card debt, or to finance
costly expenses such as a wedding or educational expense. Two
main types of home equity loans exist. The first type is the
traditional second mortgage, and the second is a home equity
line of credit.
Top^
