What is a real estate mortgage?
Real estate mortgage refers to an activity where the mortgagor provides guarantee of debt payment for the mortgagee though the use of a non-transferring possession. When the debtor does not complete payment of the debt, the mortgagor is entitled to have priority of compensation from the money earned from the auction of the mortgaged real estate. Real estate mortgage is conducted relying on the certificate of the right to the use of land, and certificate of housing ownership. The mortgagor and the mortgagee should execute a written mortgage contract.
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