Who is a Mortgagor?
A mortgagor is a person or group of people who borrow money from a financial institution in order to purchase a property. When a mortgagor takes out a mortgage, they are required to provide collateral in the event that they cannot repay the loan. ..
Who is a Mortgagee?
A mortgagee is a financial institution or bank that loans money to someone, usually for a short period of time. The mortgagee gets paid back when the person pays off their loan, usually within a certain amount of time.
Rights of a Mortgagor
- The right to redemption: this is the right of a mortgagor that puts a mortgage to an end by returning the property of the mortgagor. The right to redemption is a legal right that a mortgagor has to return the property they mortgaged to their lender if they want to end their mortgage agreement. This right comes into play when the mortgagor wants to stop using the property as their primary residence, or when they want to sell or move out of the house.
This right gives the mortgagor the right to inspect and produce documents of the mortgaged property, in addition to the right to ask the mortgagee to produce copies of documents that he has possessed. Where there are expenses on the documents, the mortgagor would have to pay within his right while it still exists.
The right to accession gives the mortgagor an entitlement to any additional value to the mortgaged property while the mortgagee is still in possession.
This gives the mortgagor the right to access the improved mortgaged property where it was still in possession of the mortgagee. The mortgagor will not be liable to pay unless such improvements were made to protect the property, if the mortgagor gave such permission, and if the improvements were made with the permission of the public authority.
Mortgagors have the right to a renewed lease on their property, within the time frame of their mortgage agreement. If the lease gets renewed, the mortgagor gets to hold benefits of the new lease. This right is reserved unless the mortgagor enters a contrary contract with the mortgagee. ..
A mortgagor can lease out a property only when he is in lawful possession, and this right is subject to the fact that the conditions of the lease must be according to local laws to avoid unauthentic transaction; there’s no rent or premium paid in advance or promised by a mortgagee.
Rights of a Mortgagee
The mortgagee has the right to receive all payments that are due on the mortgage, including late fees and penalties. The mortgagee also has the right to foreclose on the property if payments are not made on time. ..
- The right to redemption: this right gives the mortgagor the opportunity to redeem their mortgage, if they believe that it is in their best interest to do so. It can be used for a variety of reasons, such as when the mortgagor is unable to make their mortgage payments or when they are not able to sell the home due to a foreclosure.
This right of redemption completely bars the mortgagor from using his right of redemption, which can allow the mortgagee to become the owner of the mortgaged property and hold all rights to such property.
The right to sue for mortgage money gives the mortgagee the right to sue the mortgagor under certain circumstances. This right can be used to get back money that was taken from the mortgagor, or to get a judgment against the mortgagor.
The right to sell without court intervention allows the mortgagee to sell the mortgaged property without the courts’ knowledge, but this is done under specific circumstances. For example, if the mortgagee is a creditor of the debtor and has been given a pass by the debtor to sell the property, then the mortgagee can sell without fear of being sued.
The right to spend money gives the mortgagee a right to spend any money from the mortgaged property, and for the sole purpose of preservation of the property from being forfeited, sold, or destroyed. The mortgagee could also decide to add the money he spent to the mortgage money he is owed and also receive interest on the amount at the same rate.
Mortgagees have the right to keep any additions to the property as security, in the event that the mortgage is not repaid. ..
The right of possession allows the mortgagee to possess a property when and if specific obligations are not satisfied.
Conclusion
Every contractual agreement has given the parties rights within the clause of such contracts, and where one party’s right starts, the other ends. This type of contractual agreement must always come with security when taking a loan from a mortgagee. So, before taking a loan, it is advisable to always be sure to have attainable security.
A1: You should give the lender a security interest in any property you borrow from them.
A2: Your security must be of the same value as the loan you’re taking.
A2: A bank.
A2: You can take a loan from anywhere, or anyone; a friend, a bank, or any financial institution.
A3: Loans are a way for people to buy things they can’t afford on their own.
Making urgent payments is a common need in today’s economy. It could be for business reasons, or it could be personal reasons. ..
