The American Business Manual, Including Organization, Manufacturing, Advertising, Buying, Selling, Granting of Credit, and Auditing (Volume 3) (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated.1914 Excerpt: ... The actual purpose of a mortgage is merely to give security for the debt, and this view has for a long time been taken by the courts of equity. The debtor is permitted on payment of the debt and damages to the creditor to petition for the redemption or restoration of the land. A certain time is given the debtor to find the money or lose his right. This right of the mortgagor is called Equity of Redemption and can not be waived by any stipulation in the mortgage. The States have statutes requiring suits of different kinds to be brought within certain periods, usually in about twenty to twenty-one years after the debt falls due. But equity now gives the mortgagee power to cut short the right of redemption, by means of foreclosing. Status of the Mortgage To-day.--In many States the mortgage is regarded as a lien which the mortgagee has in the mortgaged premises, the mortgagor still being the legal owner, subject of course to the lien held as security for the debt. The mortgage while in form a conveyance is restricted by its defeasance clause and equity of redemption to a mere security. The mortgagor is entitled to remain in possession of the mortgaged premises until failure to pay, or to perform his obligation. After that the mortgagee may enter into possession. Of course stipulation may be made that the mortgagee may have possession, but it is not usual. Form of the Mortgage.--A mortgage is in the form of a formal deed, with the addition of the defeasance clause. No particular form is necessary for this clause, and so long as it shows that conveyance is merely to secure payment of a debt, it constitutes the conveyance a mortgage. A court of equity will accept proof going to show that a certain instrument, though a deed in form, is in reality a mortgage, the d...