Mortgagee Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Mortgagee, written in plain English, along with examples of how it is used.
What is Mortgagee?
(n) Mortgagee is the person who accept a property or title to a property as a security for the loan given to the owner of the property. The mortgagee can utilise the property so pledged to recover his legitimate dues from that mortgage agreement if the Mortgagor fail to close the loan.
History and Meaning of Mortgagee
The term "Mortgagee" has its roots in Middle English, from the Old French word "morgage," meaning "dead pledge." In English common law, a mortgagee is a person or entity that lends money for the purchase of a property in exchange for a security interest in that property, which is called a mortgage. The mortgagee has the right to take possession of the property if the borrower, also known as the mortgagor, fails to repay the loan.
Examples of Mortgagee
John took out a mortgage from the bank to buy his house. The bank is the mortgagee, and John is the mortgagor.
Mary's parents agreed to act as the mortgagee for her home purchase. If Mary can't pay her mortgage, her parents may need to take possession of the property.
The mortgagee filed a lawsuit to foreclose on the property after the mortgagor stopped making payments.
Legal Terms Similar to Mortgagee
- Mortgagor - the person who borrows money and offers a mortgage on their property as security.
- Lender - a person or entity that provides a loan or credit to another person or entity.
- Secured creditor - a lender or creditor who has a security interest in collateral, such as property or goods, to secure the repayment of a loan or debt.
- Foreclosure - a legal process by which a mortgagee can force the sale of a property to recover the amount owed under a mortgage agreement.