Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-04
MORTGAGES HELD
BOON TO BUYERS
6. c. Bowie Tells Students of
Financial Aids to In |
veStorS Today. |

Financial aid from numerous sources
and in plentiful supplies is available to
the prospective purchaser Of home or
business property under present day
business practices and strength of finan-
cisl institutions. C. Calvert Bowie OF
the II. I. Rust Co. said this week In
lecture before the y. NJ. c. A. class III
real estate, which is conducted under
the auspices of the Washington Real
Estate Board
This ready supply Of money for
legitimate purchase Of property. ne
pointed ont. has been wonderful! boon
10 the person who has not had sufficient
wealth TO pay for a home or business
property in cash II full. In fact. ne
added. in many instances il would be
unw!Se for a purchaser OF small or
large property IL his day 10 make full
psvr1,fnt when he has the opportunity
10 ar,ortize II over a period az years
while employing the bulk Of the total
for other investments.
Sources of Funds.
Ny. Bowie listed the main sources Of
funds for real estate investments as
and savings types. insurance companies.
building and loan associations. private
invest rs by sale OF large mortgages or
through sale OF small mortgage bonds,
industrial concerns, mortgage brokers.
the Federal farm loan system and trust
funds.
Discussing the change in the meaning
Of mortgages on property under modern
laws and business practices which have
greatly liberalized this method Of
financing NJ. Bowie said. IL part:
The mortgage during the days OF
its early history was an absolute con-
veysace OF property 10 the party lend
ing the money, the borrower merely
-eserving 10 himself the right 70 redeem
or take back his title upon the per-
Torrance on his part of the repayment
OF the amount borrowed.
The evolution Of mortgages, however.
has resulted IN much more convenient
ard satisfactory forms. in many in
stances changes having been influenced
and indeed required by the enactment
o. laws in the various States prescribing
what form they should take. The old
p-overb is familiar TO students and
practitioners Of the law. once mort
gage. always a mortgage" the enforce
ment Of which has always tended TO
preserve TO the borrower his Just and
proper rights Of redemption. Under
the old practices, many hardships were
inflicted upon borrowers who due 10
only temporary adverse circumstances
were unable 10 make repayment accord
ing 70 the strict letter Of their obliga-
tons.
Laws Protect Buyers.
"Tzv-s in the States now have the
very decided tendency toward protec-
ton Of the borrower. and IL some sec
t;ors Of the country il seems that they
have almost gone too far with the en-
sctment o! laws protecting them be-
yond any reasonable necessity, Such
attempts at protection, however. usu-
aily reacting 70 the detriment OF the
borrower. because the more conditions
and restrictions imposed. the fewer peo-
uie who are willing TO put up with
them. causing a definite limit 10 the
sources from which money can be Sc
cured. and hence mitigating seriously
against the interest OF the oHroWeTs
insofar as both interest rate anc the
cost Of securing the loan are concerned
In order that the rights Of all parties
may be protected. great care snouio
Be taken in the preparation o. con-
reyaaces In the transfer OF property
Alfred II. Lawson Of the Washington
Tnsn & Trust Co. declared last week
- addressing the 7. ~ c. a. class
II real estate.
ssTr,o much care cannot be exercised
IN the preparation Of conveyances." ne
said. ''ss about per cent OF the
pspers recorded are defective either as
70 parties. description Of the properly
svarrserreS or execution.
Features Of Contract.
Ny. Lawson told the student realtors
that generally speaking a CONTRACT 10.
the purchase Or sale Of real estate. U
he binding, must be IN writing ano
s,gn@d an ali parties 70 b. bound
thereto and that The cortract must
STATE expressly the subject OF the SAFE
t,he property 70 be coldJ, the terms
fne uzrries 70 the sale and having suca
re-tsin.v as 10 furnish evidence Oh
complete agreement.
In discussing the parties 70 con-
tract, NJ. lawson pointed OUT Ifaat an
agreement should not be entered INTO
With an "infant"-a person uncer the
age Of q years-3nasmuch as the
courts have permitted minors 70 rescino
the.y contracts a. any time before
reaching their majority. even though
there is los 20 other parties 10
contract. The property o. minor. he
sad, muE: not be sold without a
glayd!sn being appointed for that pur-
pose BY the court, and an order Of
he court that the property should be
sod !or the benefit Of the minor.
The lecturer also stressed The in
Kygrtsoce o. searching the title O; a
property uIcer confederation ~ de-
ierr..re 4 i is clear and urged eau
tor 81 the wording o! the contract
80 hat there void be 10 question as
u the agreement concerning the man.
Y.er o. execution .. the deeds, the
fye.t4oc o9 payment or Is U WIN
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