The term mortgage It comes from the Latin hypotheca, which originates from a Greek word. The word refers to a property that acts as a guarantee for the payment of a credit . This means that the property is held by its owner, although the creditor is in a position to promote its sale in case the debt is not paid within the agreed term.
To ensure debt collection, the creditor must make a claim, which will generate a conviction and will result in the judicial auction of good. With that money, the creditor can collect the debt.
The mortgage consists of three essential components: the capital (the amount of money that was lent by credit), the term (the time in which the repayment of the loan is agreed) and the type of interest (the additional percentage that the person Who received the loan must pay; the interest is the profit of the lender).
The interest rate can be fixed (its value is unchanged during the term of the loan) or variable (the value is reviewed periodically). The variable interest rate is the one with the highest risk for the debtor, since an economic crisis can cause the fee to be paid to go off.
In 2007 , in U.S burst the subprime mortgage crisis , a type of mortgage granted to clients with low solvency. Banks granted these loans with high interest rates and high fees; When its customers began to have difficulty paying, the system collapsed.
Mortgage assets and non-mortgage assets
There is a comprehensive classification of assets that determines which of them are mortgaged and which are not.
Between the mortgage assets are the properties that can be registered and the real rights that can be alienated.
The non-mortgage assets they are the employees of an establishment, unless they are mortgaged together with the place, the legal usufructs (except the one that has been granted to the widowed spouse).
There are also other goods that are mortgageable under a special modality, they are: the usufruct right (The mortgage will be extinguished when an event outside the will of the usufructuary occurs or until the obligation established), mere property (If the usufruct is consolidated to the owner of the same, the mortgage will be extended in case it passes to other hands), the goods that have already been mortgaged (even those who were mortgaged under the pact not to mortgage them again) and the voluntary mortgage right (The mortgage will be extinguished when the owner stipulates it)
It is convenient to clarify that all laws can also raise exceptions, so it is worth studying the conventions and the legislature to determine if you can and if you should make a mortgage.
It is worth mentioning that the mortgage right is indivisible, that is, it cannot be shared and, even if the debt is divided or forgiven, the mortgage is not extinguished. Theoretically this has been designed in this way in order to guarantee the rights of a possible third acquirer of a mortgaged property.
There are two concepts related to mortgage that are:
* Grouping of mortgaged property: it is used when a farm is unified to another that is mortgaged to join said mortgage; In these cases the mortgage continues to be taxed to the original estate.
* Division of the mortgaged estate: in the event that a mortgaged property is divided into two or more parts, the credit will not be divided unless so agreed by the creditor and the debtor.