Word Watch · Term 21 of 30 · 0:48
Mortgage
ProductionIllustrated Click2CE lesson; AI-assisted production with Sarah narration
In brief
A mortgage is a security instrument connecting property to an obligation; the promissory note ordinarily contains the promise to repay.
Example
The borrower gives the mortgage as mortgagor; the lender receives it as mortgagee. State systems differ.
TranscriptRead along, or select a timestamp to jump there
- The mortgage and the note do different jobs.
- A mortgage pledges real property as security for an obligation.
- The note documents the promise to repay.
- Follow the direction:
- the borrower is the mortgagor, giving the mortgage.
- The lender is the mortgagee, receiving the security interest.
- Keep those roles separate from the repayment promise.
- Do not assume identical title consequences in every state.
- Lien-theory and title-theory systems differ, and some transactions use a
- deed of trust.
- For this concept, focus on the security function.
- Quick check:
- which document ordinarily contains the promise to repay, the mortgage
- or the note?
- The note.
- The mortgage is the security instrument.
