A creditor may exclude or “eliminate” the debtor`s interest in the event of default on a debt or other obligation. Forced executions are a method that the creditor can use to seize the mortgaged assets that serve as collateral for the undertaking by terminating the debtor`s repayment capital and either taking over the ownership and ownership of the property, or by selling the rights to a third party and using the proceeds of that sale for the repayment or repayment of the debt. Some jurisdictions recognize extrajudicial forced executions that are not subject to court supervision; other jurisdictions only recognize judicial seizures. Foreclosures are one of the remedies available to a creditor in the event of a default on a mortgage instrument. Inter-credit contracts are entered into between two or more creditors who have lent to a single debtor in order to define the relationship between creditors and to include provisions for advances on loan income by creditors, an appropriate priority of creditors with respect to the debtor`s payments and who act (and how to act) in the event of default of the debtor. A subordination agreement changes the priority interests of a mortgaged asset of a party that has priority, another party that would otherwise be subordinated if the subordination agreement were not concluded. Some creditors may require a guarantee from one or more members, investors, partners or shareholders of an economic organization that is the debtor. A guarantee is a promise of a third party to pay a debt or fulfill an obligation according to the loan documents if the debtor does not. Depending on the creditor`s insurance requirements and transaction structure, a guarantee may be secured by additional collateral of the bond, such as.B. mortgage securities or securities on personal assets or other assets of the surety that are independent or separate from the property that constitutes the principal guarantee of the underlying loan. Guarantees provide an additional guarantee to the creditor for the payment and execution of the debt commitment and provide the creditor with an additional opportunity to sue in the event of default by the debtor. The guarantees are designed to reduce the risk of the creditor and increase the likelihood of payment and performance. The guarantors can sometimes limit the guarantees to a certain amount in dollars less than the total amount of the debt and reduce the guarantee in one way or another, since the debt obligation is repaid by the debtor.
A mortgage is a document that incriminates real estate as collateral for the payment of a debt or other obligation. The term “mortgage” refers to the document that creates the right to pledge to real estate and is registered by the local document authority to give notification of the right of bet guaranteed by the creditor. The creditor or lender, also known as a mortgage (in a mortgage) or beneficiary (in a trust company), is the owner of the debt or other obligation guaranteed by the mortgage. The debtor or borrower, also called Mortgagor (in a mortgage) or debtor (in a fiduciary company), is the person or entity that is liable for the debt or any other obligation guaranteed by the mortgage and who owns the property that is the subject of the loan. Purchasing power is a clause that can sometimes be inserted into mortgages or judgments of trust under local law, which gives the creditor or agent the right to sell the property in the event of default, without judicial power. If a mortgage gives the creditor power and state law does not prevent its exercise, the creditor may make an out-of-court sale of the interest of the defaulting debtor. A sale made pursuant to a sales power is a public sale and the statutes governing such provisions govern the execution of the sale and the type of termination.