G. Richard Davis

The Standpoint of the Lender - Guaranteed Mortgages - Borrower's Point of View - Broker's Position - Participating Mortgages - Objections Raised - Value of Plan

A mortgage on real estate is a written instrument in effect a deed of trust, and so called in many States of the Union - given to secure the repayment of a loan, as evidenced by the bond accompanying the mortgage. The form of mortgage commonly in use in this city has been more or less standardized by the title insurance companies, and other large investors. It usually contains clauses reciting when interest, taxes and assessments should be paid; fire insurance, receivership, and demolition clauses; and various other provisions for the protection of the lender. A mortgage is, a valid lien against the property described therein, whether recorded or not, but failure to record the mortgage makes it subordinate to any lien filed or other recorded claim against the same property.

As first mortgages embody all the principal points of value in a discussion of mortgage loans, this article will be confined to a consideration of them only.