There are two types of mortgage: Real Estate and Chattel. In real estate, the collateral used is a real property. Real property is also known as an immovable property like lots, buildings, condos. In chattel mortgage, the collateral used is a movable or personal property like cars, equipment, etc. This is the most advisable form of collateral any lawyer will advice you.
Usually a clause is inserted in the deed of real estate mortgage allowing the extrajudicial foreclosure of the property. You have to make sure that this is part of your agreement otherwise going through a judicial foreclosure is a tedious process. Also, it is provided under our laws that the interest should be in writing otherwise only the legal interest of 12% is applicable. Make sure that the real estate mortgage is annotated in the title (registered with the Registry of Deeds). Some creditors likewise keep the original title for additional security because under our laws, you cannot prohibit the debtor/mortgagor from selling the property. Note that the debtor and mortgagor can be two different persons.
Chattel mortgages are also allowed to be registered in the ROD.
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