A mortgage, or deed of trust in some states, is a legal document you sign when buying or refinancing the home that gives you the right to take the property if you do not repay the loan as agreed.

Mortgage takers can be people who mortgage their homes or can be companies that mortgage commercial properties (for example, their own commercial premises, residential properties rented to tenants or an investment portfolio).

This loan is secured on the existing property of the borrower, this means that, legally, if the buyer does not pay the existing debt, the bank can take the property given on the mortgage as payment of the debt.