What does a mortgage secure?

A mortgage secures the performance of an obligation, specifically the obligation to repay a loan. When a borrower takes out a mortgage, they enter into a contract with a lender where the loan amount is used to purchase real estate or secured against it as collateral. If the borrower fails to meet the terms of the loan—such as making timely payments—the lender has the legal right to foreclose on the property, meaning they can take possession of it to satisfy the debt.

This concept underscores the essential role of the mortgage as a security instrument. Unlike ownership of property or transfer of title—which involve rights of possession and transfer—it's the performance of the repayment obligation that is guaranteed through the mortgage. If the borrower meets their obligations, they maintain ownership and title, but if they do not, the mortgage allows the lender to reclaim the property. This highlights how the mortgage is fundamentally tied to the borrower's duty to fulfill the terms of the loan agreement.