In most jurisdictions, mortgages are strongly linked to secured loans on real estate and not on other real estate (such as ships) and, in some jurisdictions, only real estate can be pledged. A mortgage is the standard method that allows individuals and businesses to acquire real estate without having to pay full value immediately on their own resources. See mortgage credit for residential home loans and commercial mortgages for Credit vs. Commercial Real Estate. Consider a private mortgage? Find out if a private mortgage is right for you. A common example of a securities specialist is a real estate mortgage or an act of trust. Under these agreements, a borrower mortgages residential real estate as collateral for the repayment of the residential home loan to the lender. With a conventional bank, the lender is a “big bank” with a long list of requirements for its borrowers. In the case of a private or alternative mortgage, the lender may be a family member or a confident friend who earns more interest on his excess capital than a traditional savings account while helping a loved one. The agreement should stipulate that the contract will be terminated if the loan has been fully repaid. One of the main differences between this agreement and a trust deed is the lender`s recourse when the borrower becomes insolvent. Under a mortgage agreement, the lender may only hold a forced sale after a complaint has been filed and a court judgment has been made. Depending on the court`s schedule, the number and defence of the borrower and other procedural requirements, the silos process can take anywhere from months to a few years.
The title theory is “the idea that a mortgage transfers mortgaged title deeds from Mortgagor to the mortgage borrower who keeps it until the mortgage is satisfied or locked. Few U.S. states… adopted this theory.  According to the title theory, a mortgage has the effect of a deed that follows the legal title of the mortgage property to the borrower (the lender in a loan contract is guaranteed by the mortgage), the so-called “right title” (that is really the cash capital) is retained by the Mortgagor (the borrower in the loan). The fact that Mortgagor retains the “equity in repayment” is the fact that the surrender of the security occurred under the title theory. Mortgages within the courts of legal theory can therefore be considered as the act of what could be described as “conditional acts”.