What type of mortgage involves the direct conveyance of title subject to debt repayment?

The type of mortgage that involves the direct conveyance of title subject to debt repayment is the legal mortgage. In a legal mortgage, the borrower gives the lender a legal interest in the property as security for the mortgage debt. This means that the lender holds a title to the property and has the right to take possession if the borrower defaults on the loan.

In this arrangement, the borrower transfers the title of the property to the lender while retaining the right to use and occupy the property as long as they are meeting their repayment obligations. If the borrower fails to repay the debt, the lender has the legal right to foreclose on the property to recover the owed amount.

Understanding the nature of a legal mortgage is crucial for real estate professionals, as it outlines the rights and responsibilities of both parties involved in the transaction. This clarity protects the lender’s interests while allowing the borrower to maintain possession of their home or investment.