Mortgagee
Definition and meaning of Mortgagee in real estate.
A mortgagee is the lender or financial institution that provides a home loan to a borrower and holds the mortgage as security for the debt.
In more detail
The mortgagee receives the legal pledge of the property as collateral, which gives them the right to foreclose and sell the property if the borrower defaults on the loan. In public records, the lender is always listed as the mortgagee, and their lien is officially recorded to establish priority over other creditors.
Once the loan is fully repaid, the mortgagee is legally required to release the lien, confirming that the property is free of that debt. Understanding the role of the mortgagee is helpful for buyers when reviewing title reports and closing documents.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Identity | The bank, credit union, or financial institution lending the money |
| Key Right | The authority to foreclose on the property if the loan is not repaid |
| Counterpart | The mortgagor, who is the borrower pledging the property |
When a buyer signs the closing documents, the bank is identified as the mortgagee because it is providing the funds and holding the lien on the home.
Frequently asked questions
What is the difference between a mortgagee and a mortgagor?
The mortgagee is the lender who receives the pledge of collateral, while the mortgagor is the borrower who gives the pledge to secure the loan.
Can a mortgagee sell my loan to another bank?
Yes, a mortgagee can transfer or sell the mortgage to another financial institution, which then becomes the new mortgagee with the same rights to the collateral.
Related terms
Sources & references
See our sources and editorial standards.