It is normal that, when you start researching your first mortgage. You come across different terms that are difficult to understand. The reality is that, in the mortgage world, there are a large number of new concepts that are important. To take into account both for those who are thinking about applying for a mortgage loan and for those who already have one. In the following article we will focus on the meaning of first and second degree mortgages. First and second degree mortgage There are many people who do not know what a first and second degree mortgage loan is. For this reason, we have to explain to you how the grade of the mortgages affects the time of repaying the debt in case of non-payment. When we talk about the ranges or grades of a mortgage we are referring to the priority in collection if there is a case of non-payment . Generally, it is in the mortgage contract . Here we will clear up all your doubts in this regard and tell you in which cases it is necessary to take it into account.
First degree mortgage: What is it about?
When we refer to a first degree or rank mortgage loan, we are talking about those that have priority. For collection if there is a case of non-payment, in other words, if there are different debts on the same asset . It can be a mortgag home , if the holder of the Germany Email List mortgage loan does not have. The possibility of continuing to pay the installments, in this case, the house is repossess. Now, the money obtain from the seizure will have to be to pay, first of all, first degree debts . Since, being first degree means that it has priority for collection over other possible existing debts. The grade of the mortgages is a fundamental point that we must take into account when applying for a mortgage loan. In most cases, this is state in the mortgage contract, where most banks will state that the mortgage loan is a first lien mortgage.
Second degree mortgage: What is it about?
All mortgage loans that do not have priority in debt collection are called second degree mortgages . For there to be a second degree mortgage, it will be essential that a first degree mortgage first exists. Which will have priority in the Brazil Email List event of non-payment and the mortgaged property is seized. First degree mortgage without amount limit Also, there are first degree mortgages with no amount limit . In this case, it is a mortgage that establishes that you have preference in. Collecting the debt over other possible creditors , and also establishes that there is no amount limit . In other words, priority in debt collection applies to the entire debt, not just part of it.