Mortgage

A mortgage is a right granted to a Créancier (for example a Banque) on a Real estate (or exceptionally on a Personal property or a Navire) in guarantee of a Dette, without the owner of the good being dispossessed by it.

A mortgaged good is one although a creditor can seize if the expiries are not paid, in order to put it in Vente and to recover the sums due.

A mortgage is taken by the means of a notary or in certain cases of a Juge, and is the subject of a recording on a official Registre.

Ready real estate

In France, the mortgage is used to guarantee the payment of a debt contracted on new or old real goods. It is the subject of a Taxe of land publicity (0,615% of the amount of the loan since the 1 {{er}} January 2006). The expenses of mortgage account for approximately 2% of the amount of the loan.

  • the mortgage must be the subject of a Notarial act; the inscription is carried out with the Land Registry place where the good is.

  • the row of the mortgage takes fixe day bill of its inscription.

In the event of Financial problem , its operation will be seized and the sale of the good carried out by judicial proceedings.

Generally, in the event of sale of the real estate before expiry of the date of effect of the mortgage, it will be proceeded to radiation (called " Replevin ") inscription of mortgage, with the expenses of the debtor-salesman.

This radiation is made near the Registrar of mortgages via a notary. The expenses of this act of replevin are the responsibility of the borrower/salesman of the real estate.

Particular mortgage: the refillable mortgage

See also: refillable Mortgage

Recharging consists, for the borrower, to re-use a mortgage initially registered in support of a first loan, generally real.

The passage in front of notary remains impossible to circumvent for any recharging: a recharging of mortgage is then financially more interesting than a catch of mortgage second-rate only starting from one certain threshold of amount of loan.

The borrower then may find it beneficial any to compare with the cost and the expenses of a personal loan which can go up to 12 years of refunding for weaker amounts.

Particular mortgage: The loan for life mortage

The loan for life mortage, subscribed near a bank, can be versed in the form of capital or of revenue, guaranteed by a mortgage on a real estate with use of dwelling (main home, secondary or tenement). The borrower is held with no refunding of alive sound (capital and interests), except in the event of sale or of gift of the good.

Addressing itself almost exclusively to the elderly, this type of loan makes it possible to obtain liquidities of its inheritance without separating some, contrary to the sale in life annuity. This loan can be useful to supplement the incomes of its retirement and/or to face unforeseen expenditure (dependence, repair of housing, etc).

With the death, the heirs can then choose to repurchase the loan if they wish to preserve the real estate; but no matter what it arrives, the debt claimed by the bank will not be able to exceed the value of resale of the good as estimated at the day of the death (levelling off of the debt), which protects the heirs.

At the summer 2007, only the Building and loan association of France proposes a loan for life mortage: accessible as from 65 years and versed in the form of capital.

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