Author Question: When someone secures a mortgage to be used to purchase real property what type of a legal obligation ... (Read 43 times)

brutforce · **on:** Jul 26, 2018

When someone secures a mortgage to be used to purchase real property what type of a legal obligation is he or she entering into and how does it obligate him or her financially?

What will be an ideal response?

Question 2

What are mechanic's liens and how are they used by subcontractors and suppliers during the construction of a project?

What will be an ideal response?

BUTTHOL369 · **Reply #1 on:** Jul 26, 2018

Answer to Question 1

When someone secures a mortgage they are entering into a legal obligation that is a collateralized loan that pledges property in order to secure the loan. If there is a default on the loan the lending institution could take possession of the collateral (the property).

Answer to Question 2

Mechanic's liens are used by contractors, subcontractors, and suppliers to provide proof of their services and nonpayment of the amount they are owed by owners. Mechanic's liens are filed at country courthouses and if property is sold part of the proceeds are used to pay the mechanic's liens.