Different Mortgage Letters Explained

Overview of the Mortgage Letter Market, Different types of mortgage deed. A mortgage deed is a legally valid document proving that you have pledged your property as collateral for a loan so that the lender has a mortgage on the property.

If you want to finance a home through a mortgage loan, you have three different options: seller, mortgage or owner mortgage.

What is a Seller Mortgage Letter?

What is a Seller Mortgage Letter?

A seller mortgage can be compared to a regular mortgage. The seller mortgage bond is issued by the lender and it has two functions: It proves that the mortgage has been pledged and it acts as a debt bond. It is most often the seller of a property that issues the seller mortgage to the buyer of the property.

In this way, the buyer provides collateral in the property, and the seller therefore gives the buyer a loan on the balance of a home transaction. The advantage is that the buyer often gets a loan with a lower interest rate than the interest on a bank loan.

If it is not, and the seller mortgage is issued by a creditor other than the seller, then it is called a mortgage loan rather than a seller mortgage. We can help you obtain loan offers on mortgages of this type.

What is a Mortgage Mortgage Letter?


There are many similarities between a mortgage loan used in mortgage and a seller mortgage. A mortgage mortgage also provides security in the property, and at the same time acts as a debt.

A mortgage deed is issued with a mortgage, where the registered mortgage deed represents the security of the loan. We cannot help you obtain quotes for this type of mortgage deed. If you want a mortgage, we recommend contacting a mortgage lender.

What is an Owner Mortgage Letter?

With a mortgage deed, the owner of the property acts as both creditor and debtor. In practice, that is, a mortgage deed is a deed issued by you to yourself.  It is most often the seller of a property that issues the seller mortgage to the buyer of the property.

This type of mortgage deed is used as collateral for a loan from either bank, mortgage lender or other creditor where the mortgage deed is resold to the lender as a security for the loan.

When the debt has been paid off, the mortgage deed will be returned and it can later be used again as collateral for a loan.

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