Also known as: mortgage loans · mortgage
Written by attorneys · grounded in primary & secondary sources — see below
A loan of money secured by a mortgage on real property that pledges the property to ensure repayment of the debt. The borrower retains possession and an equity of redemption while the lender holds a security interest enforceable by foreclosure upon default.
Mariam Mansour borrowed funds from Metro Bank to purchase a home and executed a mortgage pledging the property as security for repayment. She retained possession and continued making payments until a job loss caused default. Metro Bank then initiated foreclosure proceedings to satisfy the outstanding balance from the sale proceeds.
Malcolm McKinley obtained a mortgage loan from a lender headquartered in another state to finance land located in State X. When a dispute arose over the nature of the security interest created, the court applied the law of State X as the situs of the property to determine the lender's rights and remedies.
Select any source to read its text and confirm it supports the definition.
Michael Miller fell behind on his mortgage loan payments during a severe economic downturn. The state enacted a temporary moratorium on foreclosures to address the crisis. The lender could not proceed with foreclosure until the moratorium period ended, even though the loan documents permitted acceleration.
Meridian Motors authorized its officers to mortgage corporate real property to secure a substantial loan from Momentum Capital. The board resolution expressly permitted the encumbrance regardless of whether the transaction occurred in the ordinary course of business.
Monica Morgan executed a mortgage on her commercial building to secure repayment of a note issued to Majestic Construction. When the underlying note was later declared void for lack of consideration, the mortgage became unenforceable and the lender could not foreclose.
Madison Meyers, as president of Momentum Capital, directed the company to mortgage a parcel of land to obtain additional financing. The corporate bylaws and governing statute expressly authorized the transaction as a permissible disposition of corporate assets.
The mortgage becomes unenforceable because a valid underlying obligation is required to support the security interest. If the debt is void or paid, the mortgage is extinguished.
Supporting sources
The law of the situs of the property determines whether a mortgage creates an interest in land and the nature of that interest.
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Yes. The Act expressly authorizes a corporation to mortgage or otherwise encumber any or all of its assets regardless of whether the transaction occurs in the usual and regular course of business.
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A temporary moratorium may be upheld if it serves an important public purpose during an economic emergency and is reasonable and narrowly tailored.
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…Such are cases commenced by attachment against the property of debtors, or instituted to partition real estate, foreclose a mortgage, or enforce a lien. So far as they affect property in the State, they are substantially proceedings in rem in the broader sense which we have mentioned. It is hardly necessary to observe,…