Mortgage & Kinds of Mortgage Transfer of Property Act Sec 58(a) Usfructuary, anamalous, english mortgage, reverse mortgage

2. Mortgage
• A legal agreement by which a bank, building
society, etc. lends money at interest in exchange
for taking title of the debtor's property, with the
condition that the conveyance of title becomes
void upon the payment of the debt.
• A mortgage is a security interest in real
property held by a lender as a security for a debt,
usually a loan of money.
• Wex Law Dictionary: A mortgage involves the
transfer of an interest in land as security for a
loan or other obligation.

3. • Alegaldocumentbywhichtheowner(i.e.,thebuyer)transferstothele
nderaninterestinrealestatetosecurethere
paymentofadebt,evidencedbyamortgagenote.Whenthedebtisrepai
d,themortgageisdischarged,andasatisfaction
ofmortgageisrecordedwiththeregisterorrecorderofdeedsinthecoun
tywherethemortgagewasrecorded.Because
mostpeoplecannotaffordtobuyrealestatewithcash,nearlyeveryreal
estatetransactioninvolvesamortgage

4. • Thepartywhoborrowsthemoneyandgivesthemortgage(thedebtor)i
s the mortgagor; the party who pays the money and
receivesthemortgage(thelender)isthemortgagee.UnderearlyEnglish
and U.S. law, the mortgage was treated as acomplete transfer of title fro
mtheborrowertothelender.Thelenderwasentitlednotonlytopayme
ntsofinterestonthedebtbutalsototherentsandprofitsoftherealesta
te. This meant that as far as the borrower was concerned, the realestate
was of no value, that is, "dead," until the debt was paid in full—
hencetheNorman-Englishname"mort"(dead),"gage"(pledge).

5. Transfer of Property Act, 1882
SECTION- 58 (a)
A mortgage is the transfer of an interest in specific
immoveable property for the purpose of securing the
payment of money advanced or to be advanced by way
of loan, an existing or future debt, or the performance
of an engagement which may give rise to a pecuniary
liability.
The transferor is called a mortgagor, the transferee a
mortgagee; the principal money and interest of which
payment is secured for the time being are called the
mortgage-money, and the instrument (if any) by which
the transfer is effected is called a mortgage-deed.

6. Types of Mortgages
1. Simple Mortgage
2. Mortgage by Conditional Sale
3. Usfructuary Mortgage
4. English Mortgage
5. Mortgage by deposit of title of deeds
6. Anomalous mortgage

7. Simple Mortgage
• In a Simple mortgage, the possession of the mortgaged property is
not transferred from mortgagor to the mortgagee.
If the mortgagor fails to repay the loan, the mortgagee has the right
to sell the property and recover the loan from the sale amount.
• (b) Simple mortgage.—Where, without delivering possession of the
mortgaged property, the mortgagor binds himself personally to pay
the mortgage-money, and agrees, expressly or impliedly, that, in the
event of his failing to pay according to his contract, the mortgagee
shall have a right to cause the mortgaged property to be sold and
the proceeds of sale to be applied, so far as may be necessary, in
payment of the mortgage-money, the transaction is called a simple
mortgage and the mortgagee a simple mortgagee.

8. Mortgage by Conditional Sale
• Under such Mortgage, the mortgagor apparently
sells the property to the mortgagee on certain
conditions -
1.On failure to repay the mortgage money before a
certain date the sale shall become absolute, or
2.On condition that on such repayment of mortgage
money the sale shall become invalid, or
3.On condition that on such repayment the
mortgagee shall retransfer the property.
In such case, the mortgagee is a "mortgagee by
conditional sale".

9. Usufructuary Mortgage
• In a usufructuary Mortgage, the possession of the mortgaged
property is transferred to the mortgagee. The mortgagee receives
the income from the property (rent, profit, interest, etc) until the
repayment of the loan. The title deeds remain with the owner.
• (d) Usufructuary mortgage.—Where the mortgagor delivers
possession 1[or expressly or by implication binds himself to deliver
possession] of the mortgaged property to the mortgagee, and
authorises him to retain such possession until payment of the
mortgage-money, and to receive the rents and profits accruing from
the property 2[or any part of such rents and profits and to
appropriate the same] in lieu of interest, or in payment of the
mortgage-money, or partly in lieu of interest 3[or] partly in
payment of the mortgage-money, the transaction is called an
usufructuary mortgage and the mortgagee an usufructuary
mortgagee.

10. English Mortgage
• In an English Mortgage -
1.The mortgagor binds himself to repay the borrowed money on a certain
date.
2.The mortgagor transfers the property absolutely to the mortgagee.
3.But such transfer is subject to the condition that the mortgagee will
retransfer the property on repayment before the agreed date.
• (e) English mortgage.—Where the mortgagor binds himself to repay the
mortgage-money on a certain date, and transfers the mortgaged property
absolutely to the mortgagee, but subject to a proviso that he will re-transfer it
to the mortgagor upon payment of the mortgage-money as agreed, the
transaction is called an English mortgage. 4[(f) Mortgage by deposit of title-
deeds.—Where a person in any of the following towns, namely, the towns of
Calcutta, Madras, 5[and Bombay], 6[* * *] and in any other town7 which the
8[State Government concerned] may, by notification in the Official Gazette,
specify in this behalf, delivers to a creditor or his agent documents of title to
immoveable property, with intent to create a security thereon, the transaction
is called a mortgage by deposit of title-deeds.

11. Mortgage by deposit of title of deeds
• In such mortgage, the mortgagor delivers the
title document of the property to the
mortgagee with an intention to create a
security thereon. Such mortgage is valid in
towns of Kolkata, Mumbai and any other town
as the State Government may notify by
publication in Official Gazette.

12. Anomalous mortgage
Anomalous mortgage is a combination of
different types of mortgages.
• (g) Anomalous mortgage.—A mortgage which
is not a simple mortgage, a mortgage by
conditional sale, an usufructuary mortgage, an
English mortgage or a mortgage by deposit of
title-deeds within the meaning of this section
is called an anomalous mortgage.]

13. Additional type
Reverse Mortgage - reverse mortgage loan is a loan
where the lender pays the monthly installments to you
instead of you making any payments to the lender.
Hence the name reverse mortgage, as the payment
stream is reversed. A Reverse mortgage enables senior
citizens to convert their home equity into tax-free
income. Reverse mortgages enable eligible
homeowners to access the money they have built up as
equity in their homes. They are primarily designed to
strengthen seniors’ personal and financial
independence by providing funds without a monthly
payment burden during their lifetime in their home.