DRY MORTGAGE Meaning and
Definition
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A dry mortgage refers to a type of mortgage agreement in which the lender retains the title of the property being financed until the borrower fulfills their repayment obligations. In other words, the lender does not transfer the ownership of the property to the borrower until the mortgage is fully paid off, hence the term "dry" mortgage. This type of arrangement provides security to the lender, as they have complete control over the property and can take legal action in the event of default.
With a dry mortgage, the borrower does not have the right to use the property as collateral for any additional loans or financial transactions until the mortgage is satisfied. The lender holds the legal title, and the borrower has equitable or beneficial ownership, meaning they have the right to use and enjoy the property. However, if the borrower fails to meet their payment obligations, the lender has the ability to foreclose on the property and take possession.
Dry mortgages are often used in commercial real estate transactions, where large sums of money are involved. This type of mortgage provides protection to the lender by maintaining their control over the property until the loan is fully repaid. It ensures that the lender has a legal claim on the property and mitigates their risk in case of default by the borrower.
Common Misspellings for DRY MORTGAGE
- sry mortgage
- xry mortgage
- cry mortgage
- fry mortgage
- rry mortgage
- ery mortgage
- dey mortgage
- ddy mortgage
- dfy mortgage
- dty mortgage
- d5y mortgage
- d4y mortgage
- drt mortgage
- drg mortgage
- drh mortgage
- dru mortgage
- dr7 mortgage
- dr6 mortgage
- dry nortgage
- dry kortgage
Etymology of DRY MORTGAGE
The word "dry mortgage" does not have a specific etymology on its own. Rather, it is a combination of two separate words, "dry" and "mortgage", each with their own etymologies:
1. "Dry": In this context, the word "dry" refers to a mortgage that is separate from the property. It means that the mortgage is not accompanied by any physical property or real estate asset. The usage of "dry" in this sense is derived from the English legal term "dry conveyancing", which refers to conveying property without physically handing over possession of it. The origin of "dry" in this legal context can be traced back to Old English, where it was originally used in phrases like "dryhten land" (land owned by the lord) and "dryhtinian" (to become a lord, possess land).
