Real Estate Law

Karen peart

Real Estate Law

Prof: Robert Morse

Unit 4

Mortgage, Title and Lien Theory

Essay

Kaplan University

November 2, 2011

A mortgage is a long-term loan secured by real estate: a legal agreement in which banks or similar organizations lend you money to buy a house and you pay the money back over a particular number of years (http://dictionary.reference.com/browse/mortgage). A developer may obtain a mortgage loan to finance the construction of an office building, or a family may obtain a mortgage loan to finance the purchase of a house. In either case, the loan is amortized: the borrower pays it off over time in some combination of principal and interest payment that result in full payment of the debt by maturity. In fact, a large number of mortgage loans finance residential home purchases.

There are different methods in securing and keeping ownership of property or a right to ownership of the subject property. When a party fails to maintain his or her obligation under the contractual agreement, the subject property is subjected to foreclosure. This is facilitated through concepts such as title and lien theories. Outside of foreclosures, a buyer usually will purchase the property various to real estate finance options. In terms of real estate financing, there are numerous methods. These methods range from conventional mortgages, to government-insured loans to seller financing options. In this essay I will state Georgia’s state statues on the foreclosure process, what is a Title and Lien theory, the difference between the two and the advantages and disadvantages of each theory. I will also state if Georgia is a lien or title theory state and how there foreclosure is applied. I will explain the differences between FHA and VA loans, including qualifications, eligibility and compare and contrast four different mortgages.

Georgia’s mortgages and deed trusts are of two forms of security in real property for estate...