equitable mortgage


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equitable mortgage

The declaration by a court that an instrument by which one is to pay money to another and,as a result,receive title to real property when all payments have been completed is in reality a mortgage,and the parties will be treated as if they had all the rights and responsibilities of a mortgage relationship.The exception is if an innocent third party buys the property; then the equitable mortgagor—the person making the payments—cannot recover the property but may only sue the seller for damages.See also equitable lien.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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Thus, in case of doubt, a contract purporting to be a sale with right of repurchase shall be construed as an equitable mortgage.
A contract of sale with right of repurchase shall be presumed to be an equitable mortgage when: (a) the price of a sale with right of repurchase is unusually inadequate; (b) the seller remains in possession as lessee or otherwise; (c) upon or after the expiration of the right to repurchase, another instrument extending the period of redemption or granting a new period is executed; (d) the buyer retains for himself a part of the purchase price; (e) the seller binds himself to pay the taxes on the thing sold; or (f) in any other case, it may be fairly inferred that the real intention of the parties is that the transaction shall secure the payment of a debt or the performance of any other obligation.
Fremont sued Thompson seeking an equitable mortgage on the residence or, in the alternative, damages for unjust enrichment.
The presence of any of the circumstances set forth therein suffices for a contract to be deemed an equitable mortgage. No concurrence or an overwhelming number is needed (Art.
BANKING AND CREDIT NEWS-March 4, 2011--S&P discontinues Equitable Mortgages rating(C)2011 M2 COMMUNICATIONS http://www.m2.com