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Simple English definitions for legal terms
Mortgagor
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A quick definition of Mortgagor:
Term: Mortgagor
Definition: A mortgagor is someone who borrows money from a lender to buy a house or property. The lender is called a mortgagee. The mortgagor agrees to pay back the loan over time, with interest, and the property serves as collateral for the loan. If the mortgagor fails to make payments, the lender can take possession of the property through a process called foreclosure.
A more thorough explanation:
Mortgagor
A mortgagor is a person who obtains a mortgage loan from a lender to purchase a property or to secure an existing debt. The lender, in this case, is referred to as the mortgagee.
For instance, if you take out a mortgage loan from a bank to buy a house, you become the mortgagor, and the bank becomes the mortgagee. Similarly, if you already own a property and use it as collateral to secure a loan, you are still the mortgagor, and the lender is the mortgagee.
Another example is when a business owner takes out a mortgage loan to purchase a commercial property. In this case, the business owner is the mortgagor, and the lender is the mortgagee.
The examples illustrate that a mortgagor is a person or entity that borrows money from a lender to purchase a property or secure an existing debt. The lender, on the other hand, is the mortgagee who provides the loan and holds the property as collateral until the debt is fully paid.