Land mortgage: approaches to definition, characteristics and functions

A modern term of mortgage was not formed immediately. Its appearance was due to the economic needs of the society, the development of its commodity-money relations. Over time it has constantly improved, reflecting the particular time in the particular country. Recently, the term is used in various senses, and therefore has a very rich content. This is the pledge of real estate, and a way to enforce any obligations (primarily arising from the Treaty), and obtaining a loan secured by real estate. It is also used for various housing finance schemes that, in fact, have no relation to mortgage. This word became fashionable and it has expansive interpretation when used for specific situations, which hampers the development of mortgages in Russia. In the broadest sense of the word "mortgage" means a legal system that includes procedures for determining the status of owning real estate and debt on it consistently at any given moment. In this sense, mortgage is comparable to a mathematical coordinate system. In a narrower sense it means a mortgage form of monetary obligations of the debtor (borrower) to the creditor (pledgee) by passing the real estate collateral to obtain mortgages, typically a home loan. Analysis of the definitions of mortgages and mortgage lending has demonstrated that there is no single notion of mortgages, the term is used depending on the need for its use in any particular sector of economy. Tasks assigned to the study, have made it necessary to review mortgage as a unique phenomenon in the Russian economy at a certain stage of development, as well as harmonization of the existing interpretations in terms of participation in the overall economic result at the regional and macro-levels. Mortgage is seen as the economic engine that exists within holistic socio-economic system of the State, which includes six main subsystems: borrowers of subprime mortgages, lenders who provide loans secured by real estate, three groups of intermediates to optimize cross-system processes and management subsystem [15]. Therefore, mortgage is a loan commitment, the return of which secures a pledge of real estate (mortgage). Mortgage lending is a holistic mechanism of relations arising on the issuance, sale and servicing of mortgage loans. Land mortgage is one of the possible schemes of mortgage crediting of business structures in the agrarian sector of the economy.

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