Who is Mortgagor?
A mortgagor is a person or an agency that takes out a loan from a lender (mortgagee) to buy actual property. An individual who receives a loan mortgage, normally from a monetary institution or different financial corporation, to fund the acquisition of a house, land, or business agency property is called the mortgagor. By entering into a mortgage contract, the mortgagor agrees to make regular payments, including principal and interest, over a specified period to repay the borrowed amount. The lender, known as the mortgagee, holds a security interest in the property until the mortgage is fully paid off. If the mortgagor fails to make the required payments, the lender may have the right to foreclose on the property, enabling them to sell it to recover the outstanding debt. The term “mortgagor” is commonly used in the legal and financial use related to real estate transactions and home financing.
Geeky Takeaways:
- With a mortgage, the terms and conditions of the loan are outlined in a formal agreement between the mortgagee and the mortgagor.
- As long as the loan payments are made according to schedule, the mortgagor is still the owner of the property for the duration of the mortgage.
- If the mortgagee fails to make payments on the loan, they may be able to reclaim the property by making the outstanding balance payment.
- The parameters of the loan, such as the principal amount, interest rate, repayment schedule, and any other fees or charges, are outlined in the mortgage contract.
- In addition to paying all property taxes and insurance premiums, the mortgagor is responsible for keeping the asset in good shape.
Table of Content
- How do Mortgages Work?
- Responsibilities of a Mortgagor
- Types of Mortgagors
- Applying for Mortgage Loan
- Mortgage Loan Contract Obligations
- Rights of Mortgagor
- Mortgagee vs. Mortgagor
- Conclusion
- Frequently Asked Questions (FAQs)