Read this before you mortgage your property

For the purpose of mortgaging the property, you can either go for a written and signed document or a registered document. But in both the cases, the document must clearly state the details such as the payback period, interest rate, penalty for interest default and other related conditions. In case the borrower is not in a position to repay the money, the lender would have the right to sell the property and compensate his due principal and interest and return the remaining amount, if any, to the borrower. Also, the lender must not hand over any power of attorney to the borrower since it can be misused.

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