Forum Archive Index - April 2002

[nickk@quicksilver.net.nz]

Harry

Contributory mortgages work like this:

Rich people have lots of money.  They pool it together to form a big amount
(say $500,000.00).  

Someone wants to buy a property.  They go to rich people and say 'give us
$500,000.00 so I can buy my property'

Rich people do and charge interest to the borrower as any bank would.

Borrower pays back loan just like it was a bank loan.  Rich people have
mortgage over property should loan not get repaid.

Cheers

Nk 

Harry Jones writes:

> Marilyn Munroe says contributory mortgages are an alternative investment to 
>shares etc.
> Can any one tell me what they are. My commercial dictionary says:
> 
> "contributory mortgage" means a mortgage other than a direct mortgage and is 
>also known as a nominee mortgage.
> 
> Most helpful! What mortgage other than a direct one is there?  What are these 
>beasts and who uses them?
> Harry Jones
> 
> 
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