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Mortgage is a security instrument for the lender - the loaner pledges his property to lender in return for mortgage loan. Thus the loaner or mortgagor guarantees to repay the mortgage loan to the lender or mortgagee with his/her property according to the contract.
There are several different types of mortgages and mortgage loans which vary from country to country, while each of them has its advantages and disadvantages. However, either way the lender is obliged to repay the mortgage loan to the lender according to the mortgage agreement. When the terms of contract are fulfilled the interest in property or more frequently in real estate is returned to the owner, however, if the loaner fails to repay the mortgage loan the loaner seeks foreclosure, a court ordered sale of mortgage property, land or real estate and the debt is repaid through the procedure.
In legal aspect mortgages can be either mortgage by demise or mortgage by legal charge. In mortgage by demise the lender becomes the owner of loaners property until later repays his/her mortgage loan, while in mortgage by legal charge the loaner remains the legal owner of the property. However, if the loaner does not fulfill his/her mortgage obligations the lender seeks foreclosure regardless to the legal form of mortgage.
The final result of a mortgage is practically the same throughout the world. Until the lender does not repay the whole amount of mortgage loan he/she is under threat of losing his/her property. However, it is important to be very careful at choosing appropriate mortgage.