Multiple mortgages (a comparative study)

Abstract

The possessory mortgage is considered one of the best legal means because the debt enables the creditor to own the mortgaged property through it. The Iraqi legislator has permitted multiple mortgages so that there is more than one mortgage on one property Since the debtor may be forced to borrow from more than one person, he arranges a guarantee for the creditors on one amount  The legislator addressed the issue of possession of the mortgaged property when there are multiple mortgage creditors, so that possession is for one of the mortgage creditors in principle, and when they agree on that, the mortgage creditor has two capacities: mortgagee and representative of the rest of the mortgagees Possession may be for a foreign person who is agreed upon by all mortgagees and is called the hand of justice, trustee, or agreed-upon custodian. He is the representative of the mortgagees in possession. Multiple mortgages have several characteristics that make them achieve trust and credit in financial transactions. It enables the mortgager to obtain the funds he needs with the guarantee of the mortgaged property without allocating them to only one mortgage. Also, multiple mortgages provide the mortgagee with a guarantee to secure the debts granted to the mortgager.