Types of Mortgages

• Simple Mortgage
• Mortgage by Conditional Sale
• Usufructuary Mortgage
• English Mortgage
• Mortgage by deposit of title of deeds
• Anomalous mortgage

Simple Mortgage

In a Simple mortgage, the possession of the mortgaged property is not transferred from mortgagor to the mortgagee. If the mortgagor fails to repay the loan, the mortgagee has the right to sell the property and recover the loan from the sale amount.

Mortgage by Conditional Sale  

Under such Mortgage, the mortgagor apparently sells the property to the mortgagee on certain conditions

• On failure to repay the mortgage money before a certain date the sale shall become absolute, or
• .On condition that on such repayment of mortgage money the sale shall become invalid, or
• On condition that on such repayment the mortgagee shall retransfer the property.
  In such case, the mortgagee is a“mortgagee by conditional sale”.

Usufructuary Mortgage

In a usufructuary Mortgage, the possession of the mortgaged property is transferred to the mortgagee. The mortgagee receives the income from the property (rent, profit, interest, etc) until the repayment of the loan. The title deeds remain with the owner.

English Mortgage 

In an English Mortgage the mortgagor binds himself to repay the borrowed money on a certain date. The mortgagor transfers the property absolutely to the mortgagee. But such transfer is subject to the condition that the mortgagee will retransfer the property on repayment before the agreed date.

Mortgage by deposit of title of deeds

In such mortgage, the mortgagor delivers the title document of the property to the mortgagee with an intention to create a security thereon. Such mortgage is valid in towns of Kolkata, Mumbai and any other town as the State Government may notify by publication in Official Gazette

Anomalous mortgage

Anomalous mortgage is a combination of different types of mortgages.

Reverse Mortgage

A reverse mortgage loan is a loan where the lender pays the monthly installments to you instead of you making any payments to the lender. Hence the name reverse mortgage, as the payment stream is reversed. A Reverse mortgage enables senior citizens to convert their home equity into tax-free income. Reverse mortgages enable eligible homeowners to access the money they have built up as equity in their homes. They are primarily designed to strengthen seniors’ personal and financial independence by providing funds without a monthly payment burden during their lifetime in their home. When you choose a mortgage, you’ll need to think about the repayment method, interest rate deals and special features of some mortgages. The best one for you will depend on your circumstances – so it’s important to understand your options and shop around.