Mortgagee: In a mortgage transaction, the party who receives and holds a mortgage as security for a debt, the lender. A lender or creditor who holds a mortgage as security for payment of an obligation.

 

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Mortgagee: In a mortgage transaction, the party who receives and holds a mortgage as security for a debt, the lender. A lender or creditor who holds a mortgage as security for payment of an obligation.

Mortgagees Title Insurance: An insurance policy protecting the lender for the amount of the loan in the event of a future title dispute.

Partial Release Clause: A mortgage provision under which the mortgagee agrees to release certain parcels from the lien of the blanket mortgage upon payment of a certain sum of money by the mortgagor. The clause is . . . View Full Definition

Note (Original Note): A document signed by the borrower of a loan and stating the loan amount, the interest rate, the time and method of repayment and the obligation to repay. The note serves as evidence of the d . . . View Full Definition

Nondisturbance Clause: An agreement where the mortgagee agrees to honor a tenants lease in the event that the mortgage is foreclosed.

Privity Of Contract: The relationship between contracting parties (mortgagor-mortgagee or assignee-assignor).

Subordination Clause: A clause in which the holder of a mortgage permits a subsequent mortgage to take priority. Subordination is the act of yielding priority. This clause provides that if a prior mortgage is pai . . . View Full Definition

Wraparound Mortgage: A method of financing in which the new mortgage is placed in a secondary or subordinate position, the new mortgage includes both the unpaid principal balance of the first mortgage and whatev . . . View Full Definition

Lien Theory: Some states interpret a mortgage as being purely a lien on real property. The mortgagee thus has no right of possession but must foreclose the lien and sell the property if the mortgagor defaults.

Satisfaction Of Mortgage: When all mortgage loan payments have been made and the note has been paid in full, a satisfaction of mortgage (also known as a release of mortgage or mortgage discharge) returns to the mortg . . . View Full Definition