The Farm Mortgage Handbook : a book of Facts Regarding the Methods By Which the Farmers of the United States And Canada Are Financed : Especially Intended for Investors Seeking Information Regarding Investments in Farm Mortgages

Cover The Farm Mortgage Handbook : a book of Facts Regarding the Methods By Which the Farmers of the United States And Canada Are Financed : Especially Intended for Investors Seeking Information Regarding Investments in Farm Mortgages
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If the mortgagor fails to pay insurance pre- miums or taxes when due, the company ordi- narily advances the amounts due, charges the mortgage account, and endeavors to collect the amount in due course from the mortgagor. The customary mortgage provides that failure to pay taxes or insurance premiums constitutes a default just as fully as failure to pay interest, and such default at the option of the holder of the mortgage matures the entire debt, prin- cipal, and interest, enabling recovery by
...fore- closure.
Many of the largest mortgage companies, for the convenience of the holders of their mort- gages, advance the interest when due to their customers, as well as take the responsibility of advancing taxes and insurance premiums. These companies then rely on their ability to collect The Negotiation of Farm Mortgages 71 these amounts from the mortgagors in due course, or, at the worst, to recover by foreclosure.
Customarily, if foreclosure becomes necessary, the company takes back the defaulted mortgage from its customer, giving him therefor either principal and interest to date or another mort- gage in good standing.


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