Dear All,
I have a question.What kind of mortgage does a bank requires a borrower to undergo for securing a loan on property?Does simple mortgage is preferred over an equitable mortgage?If so why?As i know a simple mortgage is to be registered compulsorily and no such registration is required as such for an equitable mortgage. Still in the case of an equitable mortgage lender obtains a form of legal mortgage executed in his favor, Subsequently, should the lender find it necessary to enforce the security, he can move the court to convert the equitable mortgage into a legal mortgage and get it registered on payment of the prescribed registration fees.Also if both the parties agree, the memorandum in the deposit of title deeds is to operate as document of bargain, then they can get the memorandum in writing registered and it can act as evidence also.
If the power of attorney and the will with respect to the property mortgaged is also registered in the name of the mortgagee to secure the loan amount that means the legal interest is also transferred , then in that case is it still necessary to go for getting mortgage registered as simple?The remedies available to the mortgagee bank is similar in both the cases of simple and equitable mortgage. Isnt it? Is there still something left which the bank considers for securing its interest and which requires it to still go for a simple mortgage only and not equitable one?
Thanks...
