Mortgagor
The borrower who receives a mortgage loan to purchase real estate and pledges the property as collateral. The mortgagor is responsible for making monthly payments and maintaining the property according to the loan agreement.
Example
“As the mortgagor, John is legally obligated to make monthly payments to the bank until his home loan is fully repaid.”
Memory Tip
MortgagOR is the OwneR who owes money - the borrower gives payments to the lender.
Why It Matters
As the mortgagor, you have specific legal obligations and rights, including the responsibility to maintain insurance and property taxes while building equity through payments. Understanding this role helps you fulfill your loan obligations properly.
Common Misconception
Some people think the mortgagor is the lender, but it's actually the borrower who owes the mortgage debt.
In Practice
When you sign mortgage documents to buy a home, you become the mortgagor and are legally bound to make payments, maintain homeowner's insurance, and keep the property in good condition.
Etymology
From the French legal suffix '-or' meaning 'one who does,' making the mortgagor the one who gives or creates the mortgage obligation.
Common Misspellings
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