The differences between collateral and mortgage guarantee

It is crucial to know the differences between guarantee and mortgage guarantee, exactly why? …

During the time of requesting a loan, the lender requires a real guarantee in order to back the money delivered. It offers you security in order to conform to the total cancellation of the financial debt. Or, on the contrary, if it is not really fulfilled, it can be carried out simply by legal means the ownership of the pledge or home loan. Following this, you can know several points that resemble all of them as guarantees.

Similarities between collateral plus mortgage guarantee

» There may be a pledge or even mortgage promise, of personal impact between the creditor and the borrower. There is only criminal obligation when the agreement is damaged.

» Any one of them is created as security for a debt.

» When delivering a great (movable or immovable), being a pledge or mortgage, you may not exempt yourself from buying the good. Except the arrears of the debt.

» The guarantee, whether or not pledge or mortgage, is definitely tied to the obligation obtained by the debtor.

» The rights from the pledge or mortgage are usually indivisible, although when it comes to home loan credit the debt can be split.

» If a pledge or mortgage is certainly delivered, it does not authorize the particular creditor to appropriate or even dispose of it. Except the particular default of the debt.

Differences in concept among collateral and mortgage ensure

The collateral assure

– This is a guarantee right given to the particular creditor by means of a special strength over a movable property. This guarantees the creditor that this debtor fulfills the responsibility until the total cancellation from the debt.

-The movable property is sent to the creditor as a shifting possession thereof. You can not utilize it for sale, because you do not have the particular domain of the garment. In certain countries you can choose to market the movable good, once the agreement is breached.

– At the time of the particular debtor to cancel the whole obligation, the creditor should return the movable home under the same conditions by which it was delivered. Colombian legislation governs the pledge idea rules in the civil program code, article 2409.

Mortgage guarantee

: It is a real right associated with guarantee, on a real estate, constituted to assure the creditor the fact that debt is paid completely. In this case, the mortgage credit score can be mentioned as an responsibility.

-The property is not given to displacement, it is usually in the owner’s possession. Even though the creditor has a special ensure, promote the sale of the home. Since there is default in the transaction by the debtor of the home loan.

– This is a real right of restitution of value, by the lender. According to the contract prior to open public registration. It only obliges the debtor to move this right as security, without losing possession from the real estate.

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