Open Mortgage
Barron's Business Dictionary:
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Open Mortgage
mortgage that has matured or is overdue, and the property is therefore open to foreclosure at any time.
| Open Listing, Open Interest, Open Housing | |
| Open Operating System, Open Order, Open Outcry |
Barron's Real Estate Dictionary:
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Open Mortgage
A mortgage that has matured or is overdue and is therefore open to foreclosure at any time.
Example: Towns sells a property to Udall. Towns provides financing for the sale in the form of a 5-year, interest - only loan. At the end of 5 years, Udall does not pay the principal and Towns allows the loan to become an open mortgage. This arrangement allows Udall to pay off the loan at any time or Towns to call the loan at any time.
Example: Towns sells a property to Udall. Towns provides financing for the sale in the form of a 5-year, interest - only loan. At the end of 5 years, Udall does not pay the principal and Towns allows the loan to become an open mortgage. This arrangement allows Udall to pay off the loan at any time or Towns to call the loan at any time.
| Open Listing, Open Housing | |
| Open Space, Open-End Mortgage |
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Barron's Business Dictionary
Dictionary of Business Terms. Copyright © 2007 by Barron's Educational Series, Inc. All rights reserved.
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