1. Simple Mortgage
In a simple mortgage, the ownership of the mortgaged property is not transferred from the mortgagor to the mortgagee. In the process of repaying the loan, if the mortgagor fails to do so, the mortgagee can sell the property and recover the loan amount from the sale.
2. Mortgage By Conditional Sale
When a person decides to take a mortgage on his immovable property as a security, the ownership of the property is not transferred, but the mortgagee, under certain conditions, can sell the property. This is called mortgage by conditional sale. It means that the mortgagor has conditionally sold his property to the mortgagee. This conditional sale will become an absolute sale if the mortgagor fails to repay the loan. On the flip side, if the mortgagor repays the money on or before the due date, their property is completely recovered from the mortgagee and thus can’t be sold by anyone else. A mortgagee enjoys more benefits in this type of mortgage than a simple mortgage. In mortgage by conditional sale, the mortgagee can own the property entirely if the money is not repaid to him.
3. Usufructuary Mortgage
In this type of mortgage, apart from using the property as a security, the mortgagor also physically delivers the property to the possession of the mortgagee until the loan amount is repaid. So, only when the loan amount is repaid can the mortgagor get back his property. During this period, the mortgagee is entitled to collect the rent and other profits of the property.
4. English Mortgage
In this type of mortgage, the mortgagor must agree to surrender his property to the absolute possession of the mortgagee on the condition that if the mortgagor repays the loan amount on or before the due date, they can completely recover their property from the mortgagee.
5. Mortgage By Deposit Of Title Deed (Equitable Mortgage)
In this type of mortgage, the mortgagor agrees to render the title document of the property to the mortgagee. This is done so as to create a security for the mortgagee in order to procure the loan amount.
6. Anomalous Mortgage
An anomalous mortgage is completely different from any of the mortgages discussed above. The main characteristic of this mortgage is that it includes simple mortgage and usufructuary mortgage by conditional sale. However, it is important to note that with this type of mortgage, possession may or may not be delivered.
Now that you aware of the various mortgages, go ahead and get yourself one. Remember to go in for the right mortgage as per your house requirements, and do your homework before you blindly procure a mortgage.