subject: More About The Atlanta Mortgages [print this page] A mortgage is a security for the performance of act. There a lot of terms and conditions for applying or getting mortgage.
A mortgage is said to be the security for the performance of an act. It comprises a mortgagor, the performer of the act. And it involves the mortgagee, the holder of the mortgage. Depending upon the theory adopted by each state, the mortgage is either a conveyance or retention of an interest in real property. The holder of the Atlanta Mortgages obtains a lien, or security interest, in the mortgaged property. It is equal to a sticker applied to a piece of property which acknowledges that the mortgagee has an interest in the property. The lien provides anyone dealing with the owner clear notice of that interest. The mortgage could also be used to secure the performance of an act by a third party.' In many instances a mortgage is made to secure a debt. It provides a security interest in property in order to insure the payment of the debt. The debt is usually evidenced by a note. There need not be personal liability resulting from the debt. In most of the cases the secured property is the only means available to the mortgagee for satisfying the debt when there is a default. The other assets of the mortgagor would not be available.
A mortgage must have the performance of an act as its rationale. It has no effect if it does not have a debt, liability, or obligation as its basis. There need not be any consideration involved. The mortgage may secure a preexisting legal obligation. For instance, a debt which may have become due could form the basis for a mortgage. The mortgage itself is enforceable only to the extent that the underlying obligation is enforceable. If an underlying note were not enforceable by reason of law or fact, the mortgage would have no effect. The promise of a gift is sufficient as an underlying obligation to make the mortgage enforceable.
Although the Atlanta Mortgages itself does not require consideration, the underlying obligation may be unenforceable without consideration, making the mortgage unenforceable. A special case exists when the mortgage is executed to secure the performance of a future act. For example, if a homeowner enters into an equity credit line, there is no debt in existence until such time as the homeowner chooses to access the money available under the credit line. When the mortgage is given, it may be that no debt is in existence, but there may be a debt in the future. In a construction loan, the mortgage exists before the loan funds are accessed. In both of these cases the mortgage is viable as an enforceable contract, because it rests upon a fixture promise to act.
