What is a Mortgage?
The word mortgage is a general term used to describe several different combinations of legal documents that allow you to finance real estate. The actual documents that you will use depend on the state in which the property is located and the type of loan you are getting. Some of the more common documents are: Mortgage, bond, promissory note, deed of trust, security deed and rider.

Regardless of the terminology, a mortgage is a financial claim against real property. You give a mortgage to a lending institution, along with a bond or note, which is a personal promise to pay. In return, the lender gives you money. You do not really "get a mortgage". As the borrower, you do the mortgaging, and are referred to as the mortgagor. The lender, who takes and holds your mortgage, is called the mortgagee. For simplicity, you can consider deeds of trust and mortgages as usually interchangeable terms.
Mortgages
In the event of default in states that use mortgages, the lender must go to court, argue the case before a judge and obtain approval before a foreclosure sale can be held. Obviously, lenders prefer to have loans secured by deeds of trust since foreclosing is cheaper and quicker than on a mortgage.
 
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