What is a mortgage?

A mortgage is a loan that is taken out to purchase a home or other real estate property. In California, a mortgage is a legal contract between the borrower, known as the mortgagor, and the lender, known as the mortgagee. This contract states that the borrower pledges the property as security for the loan and agrees to repay the loan over a certain period of time. The mortgagor is responsible for making regular payments on the loan, usually in the form of a monthly payment. If the borrower is unable to make payments on the loan, the mortgagee has the right to foreclose on the property, meaning that they can take possession of the property. Mortgages can also be used for other things, such as home renovations, investments, or debt consolidation. However, when using a mortgage for these purposes, the borrower will not be able to foreclose on the property if they are unable to make payments. In California, there are a number of laws that govern mortgage loans and how they can be used. It is important to be aware of these laws before entering into a mortgage agreement to ensure that you understand all of the terms and conditions of the loan.

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What is a mortgage?

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