mortgage definition by Wordo

Noun

A

special

form

of

secured loan

where

the

purpose

of

the

loan

must

be

specified

to

the

lender

,

to

purchase

assets

that

must

be

fixed

(

not

movable

)

property

,

such

as

a

house

or

piece

of

farm

land

.

The

assets

are

registered

as

the

legal

property

of

the

borrower

but

the

lender

can

seize

them

and

dispose

of

them

if

they

are

not

satisfied

with

the

manner

in

which

the

repayment

of

the

loan

is

conducted

by

the

borrower

.

Once

the

loan

is

fully

repaid

,

the

lender

loses

this

right

of

seizure

and

the

assets

are

then

deemed

to

be

unencumbered

.

Verb

To

borrow

against

a

property

,

to

obtain

a

loan

for

another

purpose

by

giving

away

the

right

of

seizure

to

the

lender

over

a

fixed

property

such

as

a

house

or

piece

of

land

;

to

pledge

a

property

in

order

to

get

a

loan

.