What is a mortgagee & a mortgagor?

Instead, a mortgagee is the bank or credit union that loans money for the purchase of a home or property and holds the property title until the loan is paid off. The person who borrows the money — that is, the homebuyer — is the mortgagor. This article will explain a mortgagee’s rights and other mortgage basics.

Who is a mortgagee in a real estate transaction?

In a mortgagetransaction, the lender serves as the mortgagee and the borrower is known as the mortgagor. key takeaways A mortgagee is an entity that lends money to a borrower (also known as a mortgagor) for the purpose of purchasing real estate.

What does a mortgagee do?

A mortgagee is an entity that lends money to a borrower (also known as a mortgagor) for the purpose of purchasing real estate. In order to limit its risk, a mortgagee creates a priority legal interest in the value of the mortgaged property, allowing it to seize it if the mortgagor defaults on the loan. How a Mortgagee Works