A mortgage is a conveyance of property, either real or personal, to secure payment of a debt. When the debt is paid the mortgage becomes void and of no value. In real estate mortgages the person giving the mortgage retains possession of the property, receives all the debts and other profits, and pays all taxes and other expenses. The instrument must be acknowledged, like a deed, before a proper public officer, and recorded in the office of the county clerk or recorder, or whatever officer's duty it is to record such instruments. All mortgages must contain a redemption clause, and must be signed and sealed. The time when the debt becomes due, to secure which the mortgage is given, must be plainly set forth and the property conveyed must be clearly described, located and scheduled.

Some mortgages contain a clause permitting the sale of the property without decree of court when a default is made in the payment either of the principal sum or the interest.

A foreclosure is a statement that the property is forfeited and must be sold.

When a mortgage is assigned to another person, it must be for a valuable consideration; and the note or notes which it was given to secure must be given at the same time.

If the mortgaged property, when foreclosed and brought to sale, brings more money than is needed to satisfy the debt, interest and costs, the surplus must be paid to the mortgagor.

Satisfaction of mortgages upon real or personal property may be either 1. By an entry upon the margin of the record thereof, signed by the mortgagee or his attorney, assignee or personal representative, acknowledging the satisfaction of the mortgage, in the presence of the recording officer; or 2. By a receipt endorsed upon the mortgage, signed by the mortgagee, his agent or attorney, which receipt may be entered upon the margin of the record; or 3. It may be discharged upon the record thereof whenever there is presented to the proper officer an instrument acknowledging the satisfaction of such mortgage, executed by the mortgagee, his duly authorized attorney in fact, assignee or personal representative, and acknowledged in the same manner as other instruments affecting real estate.

Chattel mortgages are mortgages on personal property. Most of the rules applicable to mortgages on real estate apply also to those on personal property, though in some States there are laws regulating personal mortgages. Any instrument will answer the purpose of a chattel mortgage which would answer as a bill of sale, with a clause attached providing for the avoidance of the mortgage when the debt is paid.

A chattel mortgage will not cover property subsequently acquired by the mortgagor. Mortgages of personal property should contain a clause providing for the equity of redemption, a mortgagee may sell or transfer his mortgage to another party for a consideration, but such property cannot be seized or sold until the expiration of the period for which the mortgage was given. Mortgages given with intent to defraud creditors are void.

Don't lose any time in having a mortgage properly recorded.

Don't pay installments on chattel mortgages unless the same are endorsed thereon.

Don't lose sight of the fact that a chattel mortgage is a conditional bill of sale.

Don't accept a chattel mortgage the term whereof is for more than a year.

Don't neglect to have a chattel mortgage signed, sealed and witnessed, and don't fail to see to it that the schedule contains every article embraced under it.

Don't fail to see to it that goods or chattels mortgaged to you are properly insured.

Don't suppose that a chattel mortgage is valid when the debt to be secured by it is not.

Don't give a chattel mortgage payable on demand unless you art prepared to forfeit the chattels at any moment.

Don't think that the destruction by fire or otherwise of the chattels mortgaged wipes out the debt.

Don't forget that foreclosure in the case of a chattel mortgage is unnecessary except to cut off the claims of other creditors.