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Simple English definitions for legal terms
Mortgagee
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A quick definition of Mortgagee:
Term: Mortgagee
Definition: The mortgagee is the person or organization that gives money to someone who wants to buy a house. The person who receives the money is called the mortgagor. The mortgagee has the right to take the house if the mortgagor does not pay back the money they borrowed.
A more thorough explanation:
Definition: The mortgagee is the party that lends money to the borrower (also known as the mortgagor) in a mortgage transaction.
For example, if you want to buy a house but don't have enough money to pay for it all at once, you might go to a bank or other lender to get a mortgage. The bank would be the mortgagee in this transaction, and you would be the mortgagor. The bank would lend you the money to buy the house, and you would agree to pay it back over time, with interest.
Another example would be if a business wanted to buy a new piece of equipment but didn't have the cash to do so. They might get a mortgage from a lender, with the equipment serving as collateral. The lender would be the mortgagee, and the business would be the mortgagor.
These examples illustrate the definition of mortgagee by showing that it is the party that provides the funds in a mortgage transaction.