A legal charge on property refers to a mortgage on land, buildings or other assets, explains Fortune Law. Legal charges arise from agreements that give lenders an interest over a borrower's assets. A legal charge does not confer ownership rights.Know More
Legal charges are a method of securing debts, notes Fortune Law. However, these instruments do not give creditors ownership rights over land or any other property used as collateral. Instead, they legally limit what a borrower can do with the asset in question. If the borrower reneges on the terms of the agreement, a lender has the right to enforce the legal charge. Under certain circumstances, the lender can enforce the agreement without going through a court.
There are two types of legal charges, explains Company Law Club. A fixed charge is created on specific assets such as land and buildings. A floating charge, on the other hand, is created on all current and future assets that a borrower owns. Unlike fixed charges, floating charges allow companies to exploit assets securing a debt in the course of their operations without constantly seeking consent from the lender.
Floating charges are typically the preserve of select individuals and corporations -- limited liability partnerships, companies, and under certain circumstances, farmers, warns Fortune Law.Learn more about Credit & Lending
There are two different processes for purchasing repos from Vanderbilt Mortgage and Finance: purchasing the property through a standard real estate listing or purchasing the property via an auction. Foreclosed homes are listed online through the official Vanderbilt Homes website, while auctions are held the first week of each month.Full Answer >
Some important factors to consider when deciding whether to refinance a reverse mortgage include the age of the borrower, the interest rate of the chosen refinancing program and the value of the property. Reverse mortgages do not require monthly payments, according to Consumer Finance.Full Answer >
A mortgage is essentially a loan, usually given by a bank, to provide individuals and families with funding to secure housing. Mortgages fall into the larger category of financial loans, but are specifically designed for real estate. Mortgages contain several different components, which include collateral, principal, taxes and insurance.Full Answer >
Mortgage amortization is the payment of debt on a home using a schedule of fixed payments prescribed at the beginning of a mortgage loan period, explains Investopedia. The amount of the payments depends on the length of the repayment period and the interest rate on the loan.Full Answer >