Well, not exactly, not quite. A mortgage is collateral for the loan and holds the title to your home. There are three levels of mortgages (loan, equity, and mortgage) and they all have different rules. For example, a loan can be used on any property with a loan amount greater than $250.00. An equity mortgage would only be considered if the loan was used on a house with a loan amount greater than $250.
The home loan is the largest step toward owning your home, and as you may have learned in Chapter 2, the mortgage is the smallest step toward ownership. However, a mortgage doesn’t have to be your primary residence. For example, if you have a $250,000 home and you are borrowing another $250,000 to get to that home, your mortgage must be used on all of your other real estate, even if you have no other real estate in the home.
The mortgage is what pays for your mortgage, so it is the biggest step towards owning your home. The mortgage is the most important step towards owning your home because it gives you the rights and protections of ownership. If your loan exceeds 25-percent of your home’s value, you lose the right to demand a deed to the home and the right to sue for foreclosure if the home is not sold.
As it turns out, the mortgage can be used to buy homes, even homes that you’ve already paid back. This is not only a very good idea, it’s a legal reality. In fact, it’s a very good idea for the rest of the mortgage that will make it easier for you to get a loan, but it may be a harder sell for you than you’d think.
One of the things that makes this possible is the fact that mortgages are not considered real property. When your mortgage is paid off, you no longer own the loan. So, in theory, you can buy and own a home, even if it’s not yours, but you won’t own it. That’s what makes the sale a legal reality.
I know this because I once thought about it, but I don’t know what to think about this. To me, it’s a perfect way of getting rid of your house, but you don’t own it.
The problem however, is that once you sell a house, you no longer own it. This is because banks and other mortgage companies (like your bank) are not owned by the government, so the sale of your house does not legally end your ability to use the home as collateral. So, the question is how best to sell your house, in order to get out from under the mortgage. Here are just a few ideas: Sell it to yourself. Sell it to a family member.
Sell it to someone else and everyone else will be furious. Then you can return the house to the lender.
Of course, there are a few ways to get around this. You can sell it and buy a new one. Or you can find a lender who will loan you money to buy it. Or you can sell it to a second mortgage holder. If the second mortgage holder is the only person who has the right to the mortgage, this makes perfect sense.
Your home’s value is not something you can just take and walk away from. If you sell your home for a high price and that’s the only thing left, you might need to return the money to the bank. That’s a problem because the bank could then sue you for the difference. The bank could also say you didn’t properly use your home, so you can’t get back the money.