Definition of Mortgage A mortgage
or in English called a mortgage is
a long-term debt instrument with a guarantee of immovable assets, usually in
the form of property (land and / building). Property is used as collateral
by the borrower (the debtor) for his obligation to pay off his mortgage to the
lender (the creditor). Generally, mortgages relate to home ownership and
are used by a person or businessperson who wants to own a property when they
don't have enough money.
In contrast to mortgages and pawns, where a
mortgage is a debt that is generally used by companies to obtain additional
capital by using fixed assets as collateral. As for pawning, the object
that is used as collateral is usually a movable (tangible) asset, and the
debtor will relinquish ownership of the guarantee object to the
creditor. So if the debtor pawns his assets as collateral, the debtor
cannot use and utilize the deferred assets.
Meanwhile for mortgages, during a certain period,
the debtor can still use and utilize the assets he has deferred to the
creditor. However, if the debtor is unable to fulfill his obligations by
paying off all his mortgage debt, the assets will fully belong to the
creditor. In general, mortgages have a fairly long term, ranging from 15
to 25 years. So it can be said that owning a mortgage is tantamount to
leasing your assets.
Mortgage Objects The
following objects can be used as mortgage
collateral by borrowers (debtors) to lenders (creditors).
·
Immovable assets or objects (tangible) and all accessories that
can be transferred.
·
Right to use an asset or object and all its accessories.
·
Right to hitchhike and right to business.
·
Land interest (either paid in cash or paid in cash).
·
Flowers as before.
·
Markets recognized by the government, along with native rights,
are inherent to them.
Features of a Mortgage
The mortgage also has several distinctive
features. Based on the Civil Code, the following are the characteristics
of a mortgage:
· Access-or, which means a mortgage
as an additional agreement whose nature depends on the main agreement regarding
the debt agreement.
·
Ondeelbar, which means that the
mortgage cannot be divided by assets because the mortgage represents all the
assets that are the object. So that even though the mortgage debt has been
paid, it does not mean that some mortgage rights will be written off.
·
Verhallsrecht, which
means that a mortgage contains only debt repayment rights, and is not related
to ownership rights in an asset. Unless from the beginning the debtor has
agreed to it, the creditor can have the right or sell the guaranteed asset if
the creditor does not fulfill his obligations.
In general, a mortgage is used as a long-term loan or credit scheme to be able to finance a property (immovable asset) which is quite expensive or cannot be done in cash. So it is not surprising that a mortgage is also known as a "claim on property", where if the debtor fails to pay off his mortgage debt before maturity, the creditor has the right to confiscate or sell ownership of the property. However, it is also possible if the creditor voluntarily releases the debt to the debtor.
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