What is A Betterment? - Definition

What is A Betterment? - Definition
Betterment can be a form of mortgage. It is typically a situation where a town requires an upgrade to something such as either your septic and or sewage, and because the town is requiring it they

are willing to lend you the money in order to install it. Whether or not Betterment is a mortgage depends on how the Betterment is written. Frequently if the Betterment is repaid through your Real Estate tax payments it is associated with your taxes and is not technically a mortgage. It is typically up to the lender’s discretion as to how they view a betterment, if it is recorded incorrectly on your deed it can be easily mistaken for a mortgage (in the case where it is not a mortgage). If it is viewed as a mortgage lender’s may require you to pay it off in order to maintain first lien position.