Where the payments on a mortgage have not been met and the instrument has not been foreclosed, the mortgagor has still what is known as an "equity of redemption."
In some states after the foreclosure of the mortgage and the sale of the property there is still a period of redemption of from sixty days to six years.
The mode of foreclosure differs in some states. The usual method is to foreclose on an order from the court, and to have the sale conducted by a court officer.
The proceeds from the sale are used to pay the principal, interests and costs. If there is money left over it is paid to the mortgagor, whose interests in the property are then at an end.
Many people, not familiar with business methods, are inclined to regard a mortgage as something of a disgrace, when, as a matter of fact it is a most usual and honorable means of raising money for the securing of a home or the conducting of a business.
Nearly all of the great railroads of the country have been built by the sale of the mortgage bonds, which are usually renewed when due, and are sought out as a safe and sane form of investment.
The fact that a mortgage payment has to be met on a farm is often in itself the strongest inducement to industry and economy.
CHAPTER IV
WILLS
Whether farmer, manufacturer, merchant or professional man, and whether in youth, mid-age or declining years, every owner of personal or real property, or both, should make a will.