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Commonly Asked Questions about Mortgage Legal Paperwork

A mortgage is a legal instrument of the common law which is used to create a security interest in real property held by a lender as a security for a debt, usually a mortgage loan.
Predatory lending schemes in California is the illegal practice by a bank and other lenders that take advantage of people who are seeking a mortgage loan. Other forms of mortgage fraud and real estate fraud in California includes illegal property flipping and straw buyer schemes.
Specific areas of focus include the Truth in Lending Act (TILA), the Ability-to-Repay/Qualified Mortgage (ATR/QM) Rule, the Real Estate Settlement Procedures Act (RESPA), the TILA-RESPA Integrated Disclosure (TRID) Rule, Flood Insurance, Mortgage Servicing Rules, the Home Ownership and Equity Protection Act (HOEPA)
The mortgage is a legal document that ties or secures a piece of real estate to an obligation to repay money. The mortgage itself does not obligate anyone to repay money. If a persons name is on the mortgage to a piece of property, then that person may not be required to repay the loan.
Once signed by both parties, this document is legally binding and includes details such as the loan terms, the monthly payment amount, the interest payment, and penalties incurred for late or missed payments.