Type of Mortgage

Type of Mortgage

Legal Mortgage:

In case of legal mortgage, the mortgager transfer legal title of mortgaged property in the name of mortgagee by an agreement. On the repayment of loan the title of mortgaged property is retransferred to the mortgager. It is also called registered mortgage.

informationmaker.blogspot.com

Equitable Mortgage:

In case of equitable mortgage, the legal title of the property is not transferred to the mortgagee. The mortgagee can apply to the court to convert equitable mortgage into a legal mortgage if the borrower fails to pay the amount of loan in specified date. It is also called unregistered mortgage.