A Mortgage Deed is a legal contract that specifies certain property as collateral in exchange for a loan. With a Mortgage Deed, you can outline the terms and conditions of the loan, and come up with a termination plan.
The benefit of Mortgage Deeds is that they give both parties get a sense of security regarding the terms of the arrangement. If you're a borrower, a mortgage deed form allows you to put up your property as collateral in exchange for a loan and helps you protect your legal rights and responsibilities if you're taking out a mortgage on your house, or maybe you're lending someone money and want some security on the loan. They also give the lender an interest in the property as a guarantee of the debt, with rights to the property until the mortgage amount is completely paid off.
Mortgage Deeds usually include details like: the property's physical address and a legal description; the mortgage amount; when the deed goes into effect; whether the lender, the borrower, or a third party is creating the mortgage deed form; whether the parties are individuals, married couples, businesses, or trusts; the contact information of both parties; and where each party will sign the deed.
Note: Not all states recognize a Mortgage Deed or Mortgage Agreement. If you live in these states, use a Deed of Trust instead: Alaska, California, Colorado, District of Columbia, Georgia, Hawaii, Idaho, Maine, Massachusetts, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, Oregon, Rhode Island, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, or Wyoming.
