Mortgagor or Mortgagee?
One of the most confusing terms in real estate is “mortgagor”. Or should I say “confused” terms? It doesn’t follow the logic, seemingly, of similar words. Let’s take a look.
The “grantor” is the seller and “gives” the real estate to the “grantee” (the buyer).
The “lessor” is the landlord and “gives” the lease to the “lessee” (the tenant).
The “optionor” is the giver of an option to buy or lease to the “optionee”.
Are you catching the trend, so far? But wait!
The “mortgagor” is NOT the giver of the loan. And the “mortgagee” is not the recipient of the loan – it’s the opposite!
The mortgagor is actually the borrower, the “giver” of the security interest (or collateral) in the real property to the mortgagee (the lender) in return for the borrowed funds.
Got that?
It’s Wendy… It’s Sold!
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call 850-259-0422
Email Wendy: [email protected]
Wendy Rulnick, Broker, sells real estate in Destin, Santa Rosa Beach, 30A, Miramar Beach, Crestview, Sandestin, Seaside, Rosemary Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Florida.
