The Collaborative International Dictionary of English v.0.48:

Mortgage \Mort"gage\, v. t. [imp. & p. p. Mortgaged; p. pr. &
   vb. n. Mortgaging.]
   1. (Law) To grant or convey, as property, for the security of
      a debt, or other engagement, upon a condition that if the
      debt or engagement shall be discharged according to the
      contract, the conveyance shall be void, otherwise to
      become absolute, subject, however, to the right of
      redemption.
      [1913 Webster]

   2. Hence: To pledge, either literally or figuratively; to
      make subject to a claim or obligation.
      [1913 Webster]

            Mortgaging their lives to covetise.   --Spenser.
      [1913 Webster]

            I myself an mortgaged to thy will.    --Shak.
      [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

mortgaged \mortgaged\ adj.
   burdened with legal or financial obligations; as, His house
   was mortgaged to the hilt.
   [WordNet 1.5]

WordNet (r) 3.0 (2006):

mortgaged
    adj 1: burdened with legal or financial obligations; "his house,
           his business, indeed, his whole life was heavily
           mortgaged"