Mortgage

“ A real-estate mortgage, or a bond and mortgage, as it is sometimes called, consists essentially of two parts, a bond or promise to pay a certain sum of money at a future date with interest at a certain rate per annum, and a mortgage or trust deed transferring title and ownership in a piece of real estate, with the provision that the transfer shall be void if the interest is regularly paid and the bond redeemed at maturity. Before advancing money on the security of a mortgage it is necessary to determine whether the title to the property legally vests in the maker of the mortgage ”

“ The first money which she could lay aside, at the head of a boarding-house, lifted the mortgage from a small property which she knew she was to inherit, and which she felt sure would increase in value. For this property she ultimately received her own price, being, to the great amazement of applicants, her own "man of business" in all negotiations. ”

“ A mortgage is a conveyance of the fee simple of real estate, liable to be defeated subsequently by payment of money, to secure the payment of which it was made. It is in no sense a chose in action, which is a thing in action, a right of action, a thing recoverable in action, a debt, a demand, a promissory note, a right to recover damages. A chose in action was originally a right of action not assignable at law. It was a cause of suit for a debt due or a wrong. The bond with the mortgage may be a chose in action; but the estate conveyed by the mortgage is not. It is a realty. ”

“ A mortgage is a grant of land as security for the payment of money, on condition that, if the money shall be paid according to contract, the grant shall be void. When only a part of the purchase money is paid on receiving a deed, the purchaser usually executes a mortgage to the seller, pledging the land as security for the remainder of the purchase money. ”

“ There's a mortgage of twelve thousand on that place now; you pay your ten, and 6 per cent, on the rest—that's something a little more than sixty dollars a month—and then you clear off your loan, or not, as suits you! I don't have to tell you that that's good business. How much of the holdings of Pearsall and Pearsall are clear of mortgages! We carry 'em on every inch of our land, right to the hilt too. If you're getting the equivalent of 8 or 9 per cent, on your money, you should worry about the man that carries the loan. ”

“ May a mortgage be taken as a security for future advances, and be a lien on the property to the extent of the sum or sums provided for in it?
The cases which affirm the doctrine that a mortgage may be given to secure future advances, or future liabilities, are very numerous. ”

“ An intending mortgagor is accordingly required to show a title easily marketable, and to verify it at his own cost. A mortgage follows the same general form as a conveyance on sale, the principal points of difference being that the conveyance of the property is preceded by a covenant for the payment of the mortgage money and interest, and followed by a proviso for reconveyance upon such payment, and by any special provisions necessary or proper in the circumstances, such as a covenant for insurance and repairs where the security comprises buildings. ”

“ INCIDENTS TO MORTGAGE.—If the mortgagor wishes to convey his interest, he transfers the estate by deed exactly as if it were unmortgaged, except that the conveyance is stated to be subject to a specified mortgage, and it is sometimes added "which the grantee assumes and agrees to pay." It is desirable for the seller that the grantee shall assume and agree to pay the mortgage while it is desirable for the buyer that he shall buy the premises merely subject to the mortgage without assuming it. ”

“ Let me take the mortgage on myself, and become sole mortgagee—hush!—on this condition,—that there should be an entire union of interests between us two; that I should be at liberty to make the improvements I desire, and when the improvements be made, there should be a fair arrangement as to the proportion of profits due to me as mortgagee and improver, to you as original owner. ”

“ I'll take your promissory note, at seven per cent, and you can secure me with a little mortgage on your Spring-street-business block. It's worth a million and a half. I am not so unreasonable as to imagine even a rich man like you can produce a million dollars cash on such notice, so during the past week I took the liberty of having the title searched and an instrument of first mortgage drawn up by myself. ”

“ If he have not cash in hand to pay for the new purchase, he will mortgage his property to the amount of the price. In this era of capital the value of land goes on increasing, and so the mortgage will in time be paid off by the estate itself. ”

“ He will finally agree to take about fifty thousand dollars. You will make the purchase proposing to pay down five thousand cash, and give a mortgage on the property for the residue of the purchase money, making short-time notes. Five thousand in hand and a mortgage will of course be safe, and the old gentleman will take it. You demand immediate possession, and as he is not residing in the house you will get it. Go with him at once to his attorney, pay the money, have the papers signed and recorded, and be in full possession of the property by four o'clock in the afternoon. ”

“ By virtue of the mortgage alone the mortgagee can neither acquire the possession nor dispose of the premises, but the existence of the mortgage does not prevent the owner from making an independent contract for the possession or from authorizing a sale of the premises, the mortgagee consenting thereto, to pay off the debt. ”

“ In the case of a mortgage upon land, the value is not in the mere paper, as paper, upon which the mortgage is written, but in the land on which the mortgage gives the mortgagee a lien for the amount of his debt. ”

“ Speaking generally, any alienable and valuable right whatever may be the subject-matter of a mortgage. Whatever can be transferred can be transferred by way of mortgage; whatever can be encumbered can be encumbered by way of mortgage. Whether I own land, or chattels, or debts, or shares, or patents, or copyrights, or leases, or servitudes, or equitable interests in trust funds, or the benefit of a contract, I may so deal with them as to constitute a valid mortgage 405security. ”

“ Our farmers who have mortgages on their property, and who have been told that free coinage will make things exceedingly easy for them, will have some unexpected experiences. Every mortgage debt that is due will be quickly called in. The mortgagor who tries to have his bond extended will find an unwilling ear. He who seeks to borrow money in order to replace the old mortgage with a new one will be told that this is no time for loans, except, perhaps, upon exorbitant conditions. ”

“ The owner of land who desires to raise money on mortgage approaches the bank and requests an investigation and appraisal, the expenses of which he usually pays. If the property is shown to be unencumbered with prior claims and meets other conditions, the bank delivers to the owner the mortgage bonds in convenient denominations up to a given proportion, usually 50 per cent., of the appraised value. ”

“ The words of the mortgage require the debtor to pay, or cause to be paid the money for which the land is mortgaged, on or before a certain day, to redeem it from the mortgage; yet, if any body-mortgagor, friend, or stranger, pay the mortgage money on or before, or after the day, it is all-sufficient to redeem the land. A treasurer's deed conveys the tract sold to the purchaser. The law gives the owner two years to pay, or cause to be paid the redemption money. A stranger, within the limited period, pays the purchase money and per centage, the owner not knowing any thing about it. ”

“ It can be sold like bonds, stocks or other property, and there are men who deal only in that form of security.
In order to sell a mortgage, the owner must make, to the purchaser, what is known as an "assignment of mortgage." ”

“ To redeem property which has been sold under a mortgage for less than the mortgage debt, it is not sufficient to tender the amount of the sale. The whole mortgage debt must be tendered or paid into court. ”

“ Mortgage Financing.—One of the most desirable types of financing is through a financially sound building and loan association whereby the interest and the amortization of the mortgage are taken care of through monthly payments. Such building and loan mortgages are available in most localities throughout the country. A series of monthly payments can be made which will take care of the interest payments and the mortgage itself so that within a period of from ten to twelve years, in most cases, the mortgage is amortized and the owner has the advantages of a home that is free of encumbrance. ”

“ In other words, it is an association composed of borrowers and lenders, and established for their mutual convenience. It gathers together the savings of the people, which, scattered and in small sums, could not be invested to advantage, and loans the money thus obtained on first mortgage security, and in sums to suit, to those who wish to build, to pay off mortgages, or for other purposes. ”

“ The baron has five-and-forty thousand dollars' worth of promissory notes. Why do you keep them when they pay so small an interest? If you were, instead, to buy a good mortgage at five per cent, you would pay four per cent to the Joint-stock Company, and one per cent. would be your own; in other words, a yearly addition of four hundred and fifty dollars. But you might make a better thing of them than that. There are many safe mortgages which are offered to sale for ready money, at a great profit to the purchaser. ”

“ If that property is already subject to mortgages or other liens, the general mortgage does not displace them, though they may be junior to it in point of time. It only attaches to such interest as the mortgagor acquires; and if he purchase property and give a mortgage for the purchase-money, the deed which he receives and the mortgage which he gives are regarded as one transaction, and no general lien impending over him, whether in the shape of a general mortgage, or judgment, or recognizance, can displace such mortgage for purchase-money. ”

“ That ground is that the first purchaser has a right to suppose that the part of the mortgaged property which he leaves with the mortgagor will in his hands be first subjected to the payment of the mortgage he has made. ”

“ In this way the daily and monthly earnings, which ordinarily should go to pay the daily and monthly expenses, are kept from those to whom in equity they belong, and used to pay the mortgage debt. The income out of which the mortgagee is to be paid is the net income obtained by deducting from the gross earnings what is required for necessary operating and managing expenses, proper equipment, and useful improvements. ”

“ Should a proprietor of house property endeavour to raise a sum of money by a first mortgage, to defray his most urgent expenses, he finds it impossible to do so, even at a most exorbitant rate of interest. ”

“ The extension of a mortgage debt, and continuance of a mortgage lien, is one mode of incumbering the property, and may be a step, and possibly, under some circumstances, a very important and necessary one, in preparing for its payment and extinguishment. ”

“ I've saved a little money and those cranberry bog shares Mrs. Pearson left me will sell for two thousand at least. That would be enough, maybe, if I wanted to risk it all, but I don't. I've got another scheme. This property of mine down here is free and clear, but, on account of its location and the view, Cap'n Bangs tells me it's worth consider'ble more than I thought it was. I believe—yes, I do believe I could put a mortgage on it for enough to pay for the fixin' over, maybe more.”
Emily interrupted.
“But, Auntie,” she said, “a mortgage is a debt, isn't it? A debt that must be paid. ”

“ A mortgagee can only foreclose those claiming an interest in the mortgaged property after himself; but a mortgagor must redeem every mortgage, and any mortgagee, in order to obtain the rights of a first mortgagee, must redeem all mortgages prior to his own. ”