If you’ve ever been a part of a real estate transaction, you’re likely familiar with the term “mortgagor.” But what does it actually mean?
In its most basic form, a mortgagor is a borrower or homeowner who has taken out a loan secured by real estate such as a house or a condo. This means the borrower is using the property as a form of collateral in exchange for the loan. The loan itself is typically set up with a set payment schedule, interest rate, and term.
In some loan documents, the term mortgagor may also refer to a guarantor of the loan. That is, someone who is obligated to pay a loan amount if the borrower is unable or unwilling to do so. It’s important to note, however, that a guarantor is not in control of the property in the same way as the mortgagor – the mortgagor is the one who owns the property.
In the event that the mortgagor can no longer make the loan payments, they do have certain rights and protections given to them by law. Depending on the jurisdiction, they may be able to appeal a foreclosure or negotiate a repayment plan with their lender. Of course, it’s always best to contact an attorney to help with the process.
Making the Most of Mortgagor Protections
The concept of a mortgagor is nothing new. In fact, it’s been around for centuries in one form or another. But today, with the help of modern legal protections for borrowers, it’s easier than ever to make the most of mortgagor rights and privileges.
For example, when entering an agreement to take out a loan, it’s important to read over the contract carefully to make sure you understand your obligations as the mortgagor. That includes knowing what will happen if you can no longer make the payments and how you can go about appealing a foreclosure, if necessary.
By understanding the definition of mortgagor and the protections offered, borrowers can feel more confident as they enter into an agreement with their lenders.