Understanding Multiple Indebtedness Mortgages: A Comprehensive Guide

A multiple indebtedness mortgage is a type of loan, found in states such as Louisiana, where you owe more than one debt that is secured by your property. Examples include home equity loans or other types of second mortgages.

Multiple Indebtedness vs. Collateral Mortgages

Unlike a collateral mortgage where a lender uses a promissory note to secure the loan, a multiple indebtedness mortgage directly secures the credit extension or loan advances on a line of credit basis. At the beginning, you will be approved for a loan of a certain amount, and later you can borrow up to that amount with less paperwork.

Requirements

Under Louisiana law, a multiple indebtedness mortgage must state within the mortgage details, the maximum amount of the loan that the mortgage is securing in order to be valid and enforceable.

Filing Provisions

Multiple indebtedness mortgages must be filed with the local clerk of court in the parish where the mortgaged property is located, except in the city of New Orleans, where it must be filed with the Recorder of Mortgages. The uniform filing fee is $25, as of 2010, plus $10 for each subsequent page, and $5 for every name beyond the first that is on the mortgage