ELI5: Explain Like I'm 5

mortgage law

Okay kiddo, let me explain mortgage law to you in the simplest way possible.

When someone wants to buy a house, usually they need to borrow money from a bank or a lender. This borrowed money is called a mortgage.

Now, when you take out a mortgage, you sign a contract that says you promise to pay back the money you borrowed plus interest over a certain amount of time, usually 15 or 30 years. This contract is called a mortgage deed.

If you don't pay back the money you borrowed according to the terms of the mortgage deed, the bank or lender can take legal action against you. This is called foreclosure, which means they can take ownership of your home to recoup their losses.

In addition to the mortgage deed, there are other laws that protect borrowers from unfair practices by lenders. For example, lenders are required by law to disclose all fees and costs associated with the mortgage, and they cannot discriminate against borrowers based on race, religion, or other factors.

So basically, mortgage law is a set of rules and regulations that protect both borrowers and lenders when it comes to buying and owning a home. It's important to understand these laws so you can make informed decisions about your mortgage.