Claims:We claim:
1) System for mortgage property by using blockchain technology is comprising of:
a. The web application for online mortgage property checking – used for applying and checking information and history of mortgage property;
b. Any electronic computing device which has active internet connection – used for interacting with web application;
c. Mortgage property database – used for storing and searching data related to mortgage property; and
d. Backend server – used for storing database and application
wherein, through an electronic device the said application can be accessed through which said user can apply and check the information related to mortgage property and its history from the database.
2) Method for mortgage property by using blockchain technology is comprising the steps of:
a. Creating a self-profile with legal documents on the web application by said user;
b. Applying for property mortgage on the web application by said user;
c. Submitting all required documents for property mortgage by said user;
d. Verification of submitted documents is done at backend server;
e. If verification results negative then it will message said user that verification is not done and update right information;
f. If verification results positive then blockchain executes smart contracts specific to requested action;
g. The new mortgage data is stored in database in cryptographic format;
h. The new block of information is created using hash;
i. This new block of information is attached to blockchain;
j. The mortgage property deed is issued to said User;
k. Anyone can check data related to mortgage property by selecting the name of property from the list
3) The method claimed in claim 2, wherein user must have government approved photo id proof to prove genuine.
4) The method claimed in claim 2, wherein user must submit all needed document related to property ownership.
5) The method claimed in claim 2, wherein user must create self-profile on web application.
6) The system claimed in claim 2, wherein user must submit proof of ownership of property.
7) The system claimed in claim 1, wherein said user can keep track on transaction related mortgage property.
8) The system claimed in claim 1, wherein user can get verified information related to mortgage property electronically.
9) The method claimed in claim 2, wherein user can monitor transaction immutably.
, Description:Field of the invention:
The present invention is related generally to the real estate sector, and more particularly to system and method for mortgage property application by using blockchain technology.
Background of the invention:
A mortgage is a process which is secured by the collateral of specified real estate property where borrower is obliged to pay back with a predetermined set of payments.
Mortgage is loan which is normally secured by property or real estate. A lender receives the promise from the buyer to pay back the funds within a certain time frame for a certain cost in exchange with funds received by the homebuyer to buy property or a home.
The advantage to a borrower is that the rate will remain constant and the monthly payment will remain the same throughout the life of the loan. The lender is taking the risk that interest rates will rise and that it will carry a loan at below-market interest rates for some or part of the period.
There are a system having mortgage related inventions, which are patented, are listed below.
US patent application US20010029482A1 by Daniel Tealdi, Matthew DeArmey, Dickson Leung discloses Online mortgage approval and settlement system and method therefor. A method for automatically fulfilling lending conditions includes the steps of maintaining a database of a plurality of registered service providers, receiving a loan application having one or more conditions to be fulfilled for the loan application to be approved, evaluating the one or more conditions to determine one or more actions to be taken towards fulfilling the one or more conditions, and automatically executing at least one action of the one or more actions to be taken towards fulfilling at least one of the one or more conditions, wherein the at least one action includes automatically requesting information for fulfilling the at least one condition from a registered service provider of the plurality of registered service providers.
US patent application US6985886B1 by David F. Broadbent, Redge L. Cook, Paul B. Coleman, William S. Harten discloses Method and apparatus for a mortgage loan management system. The automated system of the present invention uses the Federal, State, local and professional regulations and requirements and implementing instructions to generate a plurality of tasks which can be used to control and drive the process of handling a mortgage loan application to completion and settlement in accordance with these regulations. Loan requestors may specify that the system will generate the plurality of required tasks, including tasks required by applicable federal and/or state law, provide the plurality of required tasks to the requester for his execution, and monitor the completion of all required tasks so as to provide a completion certificate to the requestor. Alternatively, loan requestors may specify that the automated system will generate the plurality of required tasks, including tasks required by applicable federal and/or state law, will manage and control the execution of the required tasks, and monitor the completion of all required tasks so as to provide a completion certificate to the requestor.
US patent application US5995947A by Stephen K. Fraser, Sadashiv Adiga, Suresh Payankannur discloses Interactive mortgage and loan information and real-time trading system. The invention provides a method and system for trading loans in real time by making loan applications, such as home mortgage loan applications, and placing them up for bid by a plurality of potential lenders. A transaction server maintains a database of pending loan applications and their statuses; each party to the loan can search and modify that database consistent with their role in the transaction, by requests to the server from a client device identified with their role. Brokers at a broker station can add loan applications, can review the status of loan applications entered by that broker, are notified of lender's bids on their loans, and can accept bids by lenders. Lenders at a lender station can search the database for particular desired types of loans, can sort selected loans by particular desired criteria, can bid on loan applications, and are notified when their bids are accepted. Broker stations, lender stations, and the transaction server can be coupled using multiple access methods, including internet, intranet, or dial-up or leased communication lines.
US patent application US20060149663A1 by Evelyn Nichols discloses Mortgage financing system. The present invention is a method for providing mortgage financing to a borrower while additionally creating the opportunity for the borrower to invest in their long and short-term financial security. In real estate purchase, a mortgage is extended for greater than the real estate purchase price. The surplus amount is applied against at least one investment vehicle, so that after the periodic payments are completed, the borrower has equity in real estate and an interest in at least one investment vehicle. The investment vehicle provides security for the mortgage.
Though the prior art patent discloses Online mortgage approval and settlement system and method therefor, Method and apparatus for a mortgage loan management system, Interactive mortgage and loan information and real-time trading system and Mortgage financing system, they do not give any perfect solution for secure system for mortgage property.
Blockchain is a distributed ledger, which relates to a ledger which is spread across the network with all peers in the network, and each peer holds a copy of the complete ledge but no one can change or modify any information. Blockchain is a way of keeping records and can be used in almost any product that uses some sort of record keeping or database management.
Object of the invention:
The primary object of the present invention is to provide system and method for mortgage property by using blockchain technology where user apply for property mortgage online through an electronic device.
Another object of the present invention is to provide system and method for mortgage property where said user has to create self-profile online and must have government approved photo id proof.
Another object of the present invention is to provide system and method for mortgage property where user have to submit all required document related to property ownership.
Another object of the present invention is to provide system and method for mortgage property where said user can check transaction related to mortgage property.
Another object of the present invention is to provide system and method for mortgage property where said user can get verified information related to mortgage property electronically.
Summary of the invention:
The present invention discloses system and method for mortgage property by using blockchain technology. The system of mortgage property is comprising of;
The web application for online mortgage property checking – used for applying and checking information and history of mortgage property;
Any electronic computing device which has active internet connection – used for interacting with web application;
Mortgage property database – used for storing and searching data related to mortgage property; and
Backend server – used for storing database and application
According to the present invention, user would open the application where said user should create online self-profile. Said user would have to submit all required documents and proofs for mortgage property online through an electronic device. At backend server, verification of all submitted documents is done. If all documents are verified ok then blockchain executes smart contract specific to requested action. The new mortgage data is stored in database in cryptographically format. The mortgage property deed is issued to said user. Anyone can check data related to mortgage property by selecting the name of property from the list.
Brief description of the drawings:
Fig.1 illustrates system of this invention.
Fig. 2 illustrates flowchart of method for this invention.
Detailed description of the invention:
The present invention discloses system and method for mortgage property by using blockchain technology.
Blockchain is digital database which is distributed across a network of computers. The records on blockchain are stored in the cryptographic form which protects them from editing and removing. Blockchain can be used in various fields such as financial, insurance, education, manufacturing, logistics and real estate also. Transparency is the main features of blockchain technology.
Fig.1 illustrates the system for mortgage property by using blockchain technology is comprising of contents;
The web application for mortgage property– used for applying and checking information and history of mortgage property;
Any electronic computing device which has active internet connection – used for interacting with web application;
Mortgage property database – used for storing and searching data related to mortgage property; and
Backend server – used for storing database and application
Generally, property mortgage is secured where a borrower mortgage a property with the lender to beneficial loan. It is held by lender until full repayment of the loan and this loan is repaid through monthly instalments (EMI’s). The repayment of mortgage loan is calculated with carefully and methodically. It calculates the amount of EMI. Mortgage property system mainly describes systems by which matters concerning ownership, possession, or other rights in property can be recorded (usually with a government agency or department) to provide mortgage or loan against property and providing facility to check transactions related to mortgage property and, prevent unlawful action related to mortgage property.
Fig.1 illustrates the system of mortgage property which includes an electronic computing device with active internet connection is used for interacting with web application of mortgage property. The said user would have to create online self-profile first and then would have to submit all required documents and proofs for property mortgage to the web application through an electronic computing device. When said user submit the documents and proof, backend server gets activated. At backend server, all submitted documents and proofs would get verified. If all documents and proofs are verified and true then, new record of data is created. This new record is in the form of data block. This block is then attached to the blockchain of mortgage property system. The data is stored in the database in cryptographic form. For verified and true documents, mortgage property indeed is issued to the said user. Any person can see any record of particular mortgage property but no one can change or update it. Only viewing is allowed and editing is not allowed which is the one of the features of blockchain.
Fig. 2 illustrates method for mortgage property by using blockchain technology is comprising of the steps are as;
Step 1) User create self-profile on web application through an electronic device
User must have to create the profile on the application with details like Legal name, government-issued Id proof, and designation
Step 2) User has to submit all required documents and proof for mortgage property
Step 3) User has to apply for mortgage property to the web application via any electronic device
Step 4) The backend server verifies the documents submitted by said user
Step 5) If verification results negative then it will message said user that verification is not done and update right information
Step 6) If verification results positive then blockchain creates smart contracts specific to requested action
Step 7) The new registration data is stored in database in cryptographic format
Step 8) The mortgage property deed is issued to said user
Step 9) Anyone can check data related to mortgage property by selecting the name of property from the list
Blockchain is a decentralized, distributed, and oftentimes public, digital ledger which is used to record transactions across many computers so that any involved record cannot be altered retroactively, without the alteration of all subsequent blocks.
The present invention is including blockchain technology which is beneficial to everyone involved in mortgage property process. There are some advantages of the present invention such as;
More accurate record-keeping – User has to submit all required documents for mortgage property which includes government approved id photo proof, property ownership and other related documents. System have digitized records which are accessible with the click of a button.
Lower costs to buyers – Due to blockchain technology there is no need of third parties or agent or middleman during the settlement process, which helps in reducing closing costs.
Easy to verify the chain of title – With the help of blockchain, it is very easy to verify the chain of title and no need for title insurance.
Implementation of smart contracts – Smart contracts are coded sets of rules which is triggered when a specific event occurs.
Person have absolute proof of mortgage property which is approved by the authority registry.
It provides evidence of the title of property ownership and mortgage property electronically which means that if old deed lost or destroyed it doesn’t result in any critical situation.
It provides protection against claims of Adverse Possession.
It prevents fraud which can occur from copying or withholding title deeds, mortgage deed or a person seeking to claim that they own or have mortgage another person’s property.
It accelerates the mortgage property process. Middlemen/agents which are involved in mortgage property process hold information that user could not access or might not have license required to operate in a mortgage property transaction system. The invention application offer user a distributed database where any person can record and access information without an involvement of any centralized authority. Creating a digital deed with blockchain mortgage property can improve and make the process fast.
It provides authenticity. Property owners can apply for the mortgage property legitimately without need of third-party verification.
It reduces fraud cases related to mortgage property. With an advanced technology imposter can forge the documents and fake the title ownership with the editing software. But due to the invention application, it allows user to upload the title documentation and property ownership to the blockchain network where signers can sign the document and other users can verify it when needed. Keeping an immutable record of mortgage property transactions, blockchain can prove that user is the owner of the property title and prevent from forgery of documents. Thus, invention application could serve as proof of ownership, existence of mortgage, exchange and transaction of mortgage.
It brings transparency with smart contracts. Blockchain’s smart contracts can make the process simpler by automating verified transactions. With this invention, user can create a digital, decentralized Id as a seller and buyer. Due to this ownership transfer seamless and quicker than the traditional method. As soon as the authority confirms the mortgage of property, smart contracts trigger to update ownership and transaction corresponding to mortgage is gets stored on the blockchain. This helps in tracing the back history of mortgage of property records.
The present invention can be better understood with the help of examples.
Example 1:
According to the present invention, user K open the mortgage property application on smart phone. User K create self-profile on invention application with details like legal name, government-issued id proof, and designation. User K apply for mortgage of property application via smart phone. K has to submit all required documents and proofs for mortgage property online via smart phone. The backend server verifies the documents submitted by user K. If all documents are verified ok then blockchain executes smart contract specific to requested action. The mortgage property deed is issued to said user.
Example 2:
According to the present invention, user X open the mortgage property application on smart phone. User X want to check whether particular property is mortgage property or not. So, X select the name of property from the list of mortgage property. X can see the mortgage property deed and all transactions related to it. But cannot change or modify any records.
It should be kept in mind that the described embodiment(s) is only presented by way of example and should not be construed as limiting the inventive concept to any particular hardware and software configuration.
The present invention is not limited to components, which is mentioned in the description. Based on the same concept, mortgage property system can be built. Those who are familiar in the art will understand that a number of variations may be made in the disclosed embodiments, all without departing from the scope of the invention, which is defined solely by the appended claims.