Understanding Your Mortgage Agreement And Financing Documents
We are told the word “mortgage” comes from a French word meaning death contract. This does not imply it will kill you; but rather, the contract ends when the obligation to repay the loan has been fulfilled.
At Blackburn Lawyers, our real estate legal team will review the terms of your mortgage agreement with your bank or lending institution. Based in Richmond Hill, Ontario, our goal is to make sure you are clear about how your mortgage terms and rates will affect your finances in the present, and in the future.
We make sure you understand:
- The language used in mortgage contracts
- How a mortgage is secured through a bank or lending institution
- How interest rates will affect your mortgage payments
Enforcing The Terms Of The Mortgage
A mortgage is, in essence, any loan that is secured against real estate. The borrower’s obligation is to repay the loan upon the terms set out in the loan agreement, also to keep the taxes paid, insure the property and take care of the property so that it is not devalued.
If the borrower does not fulfil its obligations the lender may seize the property by way of foreclosure proceedings or sell the property by way of power of sale proceedings.
The latter being the most commonly used method of enforcing the mortgage.
If the lender sells the property and does not recover the total amount of money that is owed to the lender, plus the costs of dealing with the property the borrower will remain liable to the lender to repay the lender’s loss.