If a person has a mortgage on a home, it is technically a misnomer to call that person a âœhomeowner.â That individual is, in reality, a âœhome borrowerâ who lives in the home so long as regular loan installments are paid to the holder of the mortgage (usually a bank) from which the mortgage was obtained.
There are three more terms that are useful to know. While these terms have meanings that can differ depending on the context, here weâ™re talking about the context of homebuying and foreclosure.
The first term is âœsecurity.â A security is simply collateral for a loan. In this case, your house is the security.
The second term is âœsecurity interest.â A security interest is a legal right the lender has over your home. Here, the mortgage itself gives the lender specific legal rights with respect to your home.
The third term you need to know is âœlien.â A lien is a legal right that the bank has to repossess your house if you donâ™t pay your mortgage. The right exists to protect the bank by ensuring that the bank will recoup the money owed for the property even if the homeowner doesnâ™t pay the mortgage.
If you want to sell a house with a mortgage then we can help. We buy houses with mortgages and we buy houses with liens. Give u