18 June 2009
Hypothecation: The pledge of property (real estate) and or assets to secure a loan. Hypothecation does not transfer title, however it does provide the right to sell the pledged property in the event of default.
PLEDGE: giving rights in a property as security without having to give up possession of it. (same as above).
18 June 2009
Mortgage: A written instrument that creates a lien upon real estate as security for the payment of a specified debt.
Reverse Mortgage: A mortgage used by the elderly that provides income as long as they live in exchange. Payments made cause the loan principal to increase.
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