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Mortgage
The term mortgage technically originates from the Law French, an archaic language based on Norman and Anglo-Norman, literally meaning “dead pledge.
” Mortgage refers to the legal device designed to securing the property.
Mortgages typically have stronger association with real estate, rather than other types of property and in some cases the land itself may be mortgaged.
The mortgage payment is seen as a standard procedure, by which private owners or corporations can purchase residential or commercial real estate in reasonable installments without the need to plank down the full amount of money at one shot.
Historic overview reveals that a mortgage conveyed a conditional fee that would in fact be non functional in case certain conditions were not met.
Typically, but not necessarily it was person’s inability to repay a debt to the original landowner.
A “dead pledge” contrary to “live gage”, was therefore independent of raising or selling crops.
The debt would not disappear or decrease in any way even if the land could produce successful profits.
Theoretically speaking, to receive his repayment, a creditor should have accepted the crop and livestock.
But practically, this was not so, because the lender was granted a power of an absolute owner of the property.
Hence, he was free to do whatever he pleased with it.
Given the weak position of the debtor, the owner could exploit the situation to his advantage and decide to sell, or refuse it.
In time, the court began to take borrower’s side and defend his interests.
Consequently, the borrower could claim his rights and insist on recovery or reconveyance of the land.
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