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first mortgage

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First mortgage

A type of mortgage that through a lien gives precedence to the lender of the first mortgage over all other lenders in case of default.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

First Mortgage

A mortgage on a property in which the lender has the right to full payment before any other lenders or liens on the same property are paid. That is, if the borrower defaults on the mortgage, the lender of the first mortgage has first right to the property and other lenders using the same property as collateral may only use it after the first lender has been fully satisfied. Generally speaking, first mortgages carry lower risk for lenders than other mortgages.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

first mortgage

A real estate loan with the right to payment in full before payments to other lenders are made. First mortgages are generally considered low-risk investments, although the quality of real estate pledged as collateral is of crucial importance in determining the riskiness of the mortgage.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

first mortgage

A real estate loan made to the borrower and recorded in the public records by the lender,before any other mortgages.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

First Mortgage

A mortgage that has a first-priority claim against the property in the event the borrower defaults on the loan.

For example, a borrower defaults on a loan secured by a property worth $100,000 net of sale costs. The property has a first mortgage with a balance of $90,000 and a second mortgage with a balance of $15,000. The first mortgage lender can collect $90,000 plus any unpaid interest and foreclosure costs. The second mortgage lender can collect only what is left of the $100,000.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.
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References in periodicals archive
Customers can access mortgage advice at its head office premises in Edinburgh, through one of its 14 mortgage shops, as well as remotely over the telephone, a channel through which First Mortgage has driven significant growth over the last few years.
* $1,350,000 first mortgage loan for a gut renovated 4-story apartment building containing 2 ground level stores and 6 apts in the Redevelopment district of downtown Yonkers, NY.
Note that refinancing the first mortgage alone is not a good option because the first mortgage lender requires the borrower to obtain permission of the second mortgage lender, without which the second mortgage becomes the first mortgage.
The first mortgage debt is secured under its indenture, by a mortgage lien on substantially all of the cooperative's tangible and certain intangible assets.
A consumer direct lender, Veterans First Mortgage has three offices, operating, two in Salt Lake City and one in San Diego.
As noted, roughly 20 percent of all mortgage debt holders have refinanced their first mortgage loan.
* A $33,500,000 first mortgage bridge loan secured by commercial property located on Spring Street in Manhattan's SoHo neighborhood, as well as a development site located on West 46th Street in the Hell's Kitchen neighborhood of Manhattan.
The terms of this cash transaction are not being disclosed by the parties; however, a significant portion of the purchase price for Veterans First Mortgage assets is conditioned upon certain future profitability measures.
The agreement is also expected to include servicing rights from Veterans First Mortgage on approximately 9,000 loans, totaling an estimated USD 1.4bn in principal balance.
* A $1.9 million first mortgage for Ridge Apartments Owners Corp., a 64-unit co-op at 41-34 Frame Place in Flushing, NY:
* A $3.5 million first mortgage for Allendale Apartments, Inc., an 82-unit co-op at 34-24 82nd Street in Jackson Heights, NY;
A $3.5 million first mortgage and $750,000 line of credit for New York Teachers Housing Corp., a 223-unit co-op at 3130 Irwin Ave & 3125 Tibbett Avenue in Bronx, NY;
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