Security Interests in Real Property
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The Mortgage
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As previously mentioned, there are four main security interests in real property. The mortgage is probably the most well-known, and the most significant in the everday lives of people. A mortage is a transfer of an interest in real property to a lender as security for a debt. The most obvious example of a mortgage is when a debtor transfers his or her interest in a home to a lender, usually a bank, as security for getting the money to be able to purchase that same home. It is not uncommon to hear people talk about their mortgage payment, as most people cannot purchase their home without borrowing money from a bank to do so.

If the debtor defaults, or fails to make his or her monthly mortgage payment, the lender can assert his or her security interest in the real property by having a judicial foreclosure sale. A judicial foreclosure sale is usually conducted by the sheriff.

Next, we’ll look at deeds of trust.

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