What is referred to as "mortgagor" in a mortgage agreement?

What is referred to as "mortgagor" in a mortgage agreement?

• A. The lender providing the mortgage
• B. The seller of the property
• C. The borrower in a mortgage agreement
• D. The real estate agent facilitating the transaction

Answer: (C)

In a mortgage agreement, the term "mortgagor" specifically refers to the borrower. This individual or entity takes out a mortgage loan to purchase real estate and is responsible for repaying the loan to the lender over time. The mortgagor pledges the property as collateral for the loan, which means that if they fail to repay the loan, the lender can foreclose on the property. The other roles mentioned in the choices serve distinct purposes. The lender, often a bank or financial institution, is known as the "mortgagee," while the seller of the property is typically the owner transferring the property rights to the buyer. A real estate agent plays a facilitative role in the transaction, assisting with the sale but does not borrow money or serve as either the mortgagor or mortgagee. Understanding these definitions is crucial for grasping the structure of mortgage agreements and the roles of involved parties in real estate transactions.

In a mortgage agreement, the term "mortgagor" specifically refers to the borrower. This individual or entity takes out a mortgage loan to purchase real estate and is responsible for repaying the loan to the lender over time. The mortgagor pledges the property as collateral for the loan, which means that if they fail to repay the loan, the lender can foreclose on the property.

The other roles mentioned in the choices serve distinct purposes. The lender, often a bank or financial institution, is known as the "mortgagee," while the seller of the property is typically the owner transferring the property rights to the buyer. A real estate agent plays a facilitative role in the transaction, assisting with the sale but does not borrow money or serve as either the mortgagor or mortgagee. Understanding these definitions is crucial for grasping the structure of mortgage agreements and the roles of involved parties in real estate transactions.