A residential mortgage is a security instrument for a loan against residential property. The mortgage is a document that must be signed by the borrower and recorded. You can find out if there is a residential mortgage against a particular piece of property by searching the county records where the home is located. A residential mortgage is usually a good investment for the lender. The lender earns interest on the money loaned and is considered fairly safe against loss. The lender requires insurance for property destruction due to fire, storm, etc. If the borrower fails to make payments on note then the lender can foreclose on the property. The borrower is served notice of foreclosure and has a designated time period to satisfy the loan or vacate the property. Then the property is sold and the proceeds are applied to the loan balance.