Basis |
Mortgagee |
Mortgagor |
Role |
In a mortgage transaction, the mortgagee is the lender who gives the borrower the money. |
In a mortgage transaction, the borrower who receives the money from the mortgagee to buy a property or secure finance is known as the mortgagor. |
Ownership of Property |
Although the property is a security interest or lien held as security for the loan, the mortgagee does not own the property. |
The property is owned by the mortgagor, who uses it as security to get a loan from the mortgagee. |
Legal Rights |
If the mortgagor defaults on the loan, the mortgagee is legally entitled to enforce the terms of the mortgage agreement, including the right to foreclose on the property. |
The mortgagor may be able to pursue legal action against the mortgagee if unfair or illegal activities are taken. |
Risk |
The risk of a mortgagor default is assumed by the mortgagee and might lead to monetary losses or the necessity for property foreclosure. |
If the mortgagor does not make the agreed-upon loan repayments, they run the danger of losing the property through foreclosure. |
Mortgagor : Meaning, Responsibilities, Types, Rights and FAQs