The hypothesis arises when an asset is mortgaged as collateral to secure a loan. The owner of the asset does not waive property, property or property rights, such as . B, income generated by assets. However, the lender can seize the asset if the terms of the agreement are not met. Although similar, a mortgage deed and a mortgage agreement are not the same: they are not really the same. In the case of a mortgage, the owner of the property is held until the borrower repays the loan. In a mortgage agreement, the borrower retains ownership of the property. Pension or rest transactions allow one party to sell securities to another party and buy them back later. The first party pays less than the proceeds of the sale to redeem the warranty. The buyback discount is the seller`s source of profit on the pension agreement.
Repo agreements are therefore in fact loans for which the securities sold act as a rehypothecated collateral. A rental property can be. B as collateral for a mortgage issued by a bank. Although the property remains the guarantee, the bank is not entitled to the rental income that is in serthenen; However, if the lessor is late in the loan, the bank can seize the property. Hypothesis. The tenant must not mortgage, mortgage or incriminate the tenant`s interest in this tenancy agreement or premises, or otherwise use as a security device without the consent of the landlord, who may retain at his sole discretion. The lessor`s consent to such a mortgage or to the creation of a right of guarantee or mortgage does not constitute consent to the transfer or any other transfer of the lease after the embezzling of a pledge or mortgage. As a general rule, the mortgage agreement defines important points: the assumption offering guarantees to the lender because of the granting of guarantees by the borrower makes it easier to secure a loan and the lender can offer a lower interest rate than an unsecured loan. The following language is for a form of mortgage arrangement and comes from Law Insider: Hypothecation is the most common in mortgages. The borrower technically owns the house, but since the home is mortgaged as collateral, the mortgage lender has the right to seize the home if the borrower cannot meet the terms of repayment of the loan agreement – which happened during the enforcement crisis. Auto loans are similarly secured by the underlying vehicle. On the other hand, unsecured loans do not work with the assumption, as there is no guarantee to claim in the event of default.