anaconda mortgage

A mortgage containing a clause saying it secures the debt originally intended by the parties, and all future debts that may become due and owing in the future. Such clauses are sometimes called dragnet clauses or Mother Hubbard clauses.The effect is that a borrower with multiple loans—real estate, automobile, line of credit, checking account overdraft protection, business—may find that the lender will require all sale proceeds when the property is sold,even though the borrower might have substantial equity under the terms of the specific note originally secured by the mortgage.Debtors find themselves squeezed to death,like being encircled by an anaconda snake.The courts disfavor such clauses and usually refuse to enforce them unless there is some relationship among the debts and some specific reference in later loan documents to the earlier anaconda clause.Despite that,it is recommended that you ask mortgage lenders to delete the clause from their instrument before you sign.

单词	anaconda mortgage
释义	anaconda mortgage anaconda mortgage A mortgage in which all debts owed by the mortgagor (such as automotive, credit, business, land, etc.) are used to secure the loan, such that an increasing amount of debt is applied to the borrower upon failure to repay. Be careful not to sign into any kind of anaconda mortgage, or they could take everything you own! anaconda mortgage anaconda mortgage A mortgage containing a clause saying it secures the debt originally intended by the parties, and all future debts that may become due and owing in the future. Such clauses are sometimes called dragnet clauses or Mother Hubbard clauses.The effect is that a borrower with multiple loans—real estate, automobile, line of credit, checking account overdraft protection, business—may find that the lender will require all sale proceeds when the property is sold,even though the borrower might have substantial equity under the terms of the specific note originally secured by the mortgage.Debtors find themselves squeezed to death,like being encircled by an anaconda snake.The courts disfavor such clauses and usually refuse to enforce them unless there is some relationship among the debts and some specific reference in later loan documents to the earlier anaconda clause.Despite that,it is recommended that you ask mortgage lenders to delete the clause from their instrument before you sign.
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