Who is a Mortgagee?

Posted on 27 November 2009

A mortgagee is known as that entity that perform the role of a lender to a borrower for the purpose of buying a piece of real property. In a real estate transaction, for completing the deal the lender handover the necessary funds to the borrower or mortgagor. As we all know that buying a home is quite often a lengthy endeavor, so for that reason the lender and borrower begin a professional affiliation that continues over the entire time of the loan.

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How does Mortgage agents and mortgagee differ?

Indeed mortgagees have funds available to make the loan, and one should consider them to be mortgage “agents.” Mortgage agents are not the one who lends money or make loans of any kind; they just act on behalf of actual lenders.

Functions of a Mortgagee

The function of a mortgagee is just simple and straightforward. The mortgagee assists the mortgagor in finding an appropriate home loan, then a proper mortgage rate and loan term is determined by him to fit the borrower’s needs and financial abilities, he has to processes and underwrites all the paperwork that is required for the transaction, and finally finances the loan.

When does this process Concludes?

The entire loan process ends at closing, it is the time when the funds are supplied by the lender for the property and the mortgagor agrees that he or she will pay back the created debt. Borrowers is required to sign a loan contract  before the finalization of the loan, as this contract gives the lender a secure interest in the home or property. Simply explaining, both parties must have to agree that till the loan is paid the dwelling or land will be considered as collateral for the loan that has to be paid.

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What if the borrower is unable to pay back the loan?

If the time reaches and the borrower is still unable to repay the debt, then a mortgagee has the right to take the possession of the mortgaged property. If this is the case, then a mortgagee also has a right to sue for the mortgage money. A lender has a claim that is secured by the mortgage until a mortgage is paid in full. In the case of default the standard cure for a lender is foreclosure.

Pay all debt to be the owner

It is important for borrowers to keep in mind that in order to avoid foreclosure timely submission of all mortgage payments is necessary. In addition to this, the property or home that the borrower has purchased is not really the borrower’s property until the debt is paid in full. That’s true that it is not an easy task to pay the loan in full but it is the only way to own a property indeed.

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This post was written by:

R. MAK. – who has written 325 posts on Loan Mortgage Credit!.


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