LOAN DOCUMENTS AND MORTGAGES
- Mortgage Agreement
Mortgage Agreement"When you've decided to take that next step in life and purchase a home, you'll most likely need to take out a loan. Many people assume that the loan you receive is called a mortgage. However, this is a common misconception. Your Mortgage Agreement (or a Deed of Trust in some states) is not the loan but the interest in the property itself. A Mortgage Agreement (also known as Mortgage Deed) is a pledge by the borrower (mortgagor) that in case of default on the loan, he or she will give up their claim to the property to the lender (mortgagee). A Mortgage Agreement places a lien on the property.Whether or not you use a Mortgage Agreement or a Deed of Trust depends on the where your property is located. For help in determining which deed you need, review the help article to the right."
- Mortgage Deed
Mortgage Deed"A Mortgage Deed is document that allows a borrower to pledge property to a lender in exchange for a loan. This document gives the lender an interest in the pledged property as security for the debt owed. Once the borrower repays the debt in full, the lender's interest in the property can be released. This document must be signed by both parties and filed at the county recorder's office."