Compulsory mortgage – A compulsory mortgage is the registration of a mortgage in the land register in the course of a compulsory execution. A forced mortgage is also considered a security mortgage, but unlike a normal mortgage, it is not contractually agreed and is entered in the land register in the course of the foreclosure. Foreclosure mortgages make foreclosure auctions possible and thus result in advantages for the creditor. The advantages include, among others, the resulting participation in a foreclosure, the receipt of a share in the auction proceeds and the obtaining of the redemption right.
Compulsory mortgage at a glance: Compulsory registration of a mortgage in the land register
Registration of a mortgage in the land register by foreclosure
Is also considered a security mortgage, but is not contractually agreed and is only entered in the land register in the course of compulsory enforcement.
Allows foreclosures and benefits for the creditor
Advantages include: Creditor’s participation in foreclosure, receipt of share of proceeds and obtaining the right of redemption.
