What is a mortgage?

A mortgage is a legal document that a borrower signs to pledge a property as collateral for a loan. Mortgages are often used to purchase a home, but can also be used to obtain other types of real estate, such as investment properties. In Florida, mortgages are created by having the borrower sign a deed of trust document that pledges the title of the property. The mortgage will then be recorded at the county land registry. The deed of trust document will also contain the details of the loan, such as the interest rate, repayment terms, and any other covenants. The lender it the party that holds the mortgage. They will be paid back the loan plus interest over a specified period of time. The lender also has the right to foreclose on the property if the borrower fails to make payments. Mortgages are a complex legal instrument and understanding how they work is essential for anyone considering taking out a mortgage loan in Florida. An experienced real estate lawyer is the best resource for understanding how mortgages function and ensuring that all applicable laws and regulations are being followed.

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