9:32
[kevin oleary]
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LSDefine
Simple English definitions for legal terms
consolidation of mortgages
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A quick definition of consolidation of mortgages:
Consolidation of Mortgages: When someone borrows money to buy a house, they usually have to give the lender a mortgage. A mortgage is like a promise to pay back the money. Sometimes, a person might have more than one mortgage on their house. If this happens, the lender who gave the mortgages has the right to say that they won't release one mortgage unless all the mortgages are paid off. This is called consolidation of mortgages.
A more thorough explanation:
Definition: Consolidation of mortgages is the legal right of a mortgage lender who holds multiple mortgages on a property owned by the same person to refuse to release one mortgage unless all the mortgages are paid off.
Example: John owns a property and has taken out three mortgages on it. Mortgage lender A holds the first mortgage, mortgage lender B holds the second mortgage, and mortgage lender C holds the third mortgage. If John wants to pay off only the first mortgage, mortgage lender A can refuse to release the mortgage unless John pays off all three mortgages.
Explanation: This example illustrates how consolidation of mortgages works. If a property owner has multiple mortgages on their property, the mortgage lenders have the right to refuse to release one mortgage unless all the mortgages are paid off. This is to protect the mortgage lenders' interests and ensure that they are paid in full before any mortgages are released.