Mortgages (overview)

Question 1

What does a mortgage pledge?

Answer 1

Pledges the property as security (collateral) for the debt

A mortgage secures the repayment of a loan by using the property as collateral.

Question 2

What does the mortgage document create?

Answer 2

The legal document that, when recorded, creates a lien on the real estate that secures the debt

A mortgage involves a legal agreement between borrower and lender regarding the property.

Question 3

What is hypothecation?

Answer 3

The pledging of property as security for payment of the loan without surrendering possession of the property

Hypothecation allows the borrower to retain use of the property while it serves as collateral.

Question 4

Who is the mortgagor?

Answer 4

The one who gives the mortgage, is the borrower (debtor)

a. -or is the one who gives
b. (It seems a bit counterintuitive, but the -ee receives, and the one who receives the mortgage is the lender)
c. because remember, the mortgage is the pledge of the property

Question 5

Who is the mortgagee?

Answer 5

The one who receives the mortgage is the lender (creditor)

• The mortgagee holds the lien on the property until the debt is repaid.
  -ee is the one who receives
• because remember, the mortgage is the pledge of the property

Question 6

What is a promissory note?

Answer 6

The note that must accompany all mortgages; it is an acknowledgment of the debt and a promise to repay

The promissory note is essential for the enforcement of the loan agreement.

Question 7

The promissory note makes the borrower personally ____

Answer 7

liable

This means the borrower is legally obligated to repay the debt.

Question 8

The promissory note includes the ___ of the agreement

Answer 8

terms of the agreement

These terms outline the conditions of repayment, including interest rates and payment schedule.

Question 9

The priority of mortgage lien is determined by its _____ ___

Answer 9

recording date

The earlier a mortgage is recorded, the higher its priority in the event of foreclosure.

Question 10

The first mortgage is the first mortgage loan to be ____

Answer 10

recorded

This mortgage has the highest priority among other liens against the property.

Question 11

The mortgage lien priority may change if the lienholders agree to a ___ agreement

Answer 11

subordination agreement

This agreement can alter the priority of liens, often allowing a new loan to take precedence over existing ones.

Question 12

What happens when the mortgagee records the satisfaction of the mortgage?

Answer 12

It releases the lien

Recording satisfaction indicates that the debt has been paid in full.

Question 13

Florida law requires satisfaction within __ ___ of payoff

Answer 13

60 days

This law ensures timely release of the lien after the mortgage is paid off.