Mortgage refers to promise made by the borrower of the money to the lender of money by transferring the ownership in the property of the borrower to the lender of the money. There are basically two parties to mortgage one is called mortgagor and other is mortgagee. Let’s look at both of them one by one
1. Mortgagor – Mortgagor in simple words is the borrower who has taken the loan from the lender. Mortgagor is the one who pledge the security for the debt which he or she has taken from the Mortgagee. Mortgagor will sign or authenticate the documents and give it to the Mortgagee because it is a necessary condition for be mortgage to be legally enforceable by the court of law.
2. Mortgagee – Mortgagee is one who has given the loan to the mortgagor or borrower, and for giving this loan the mortgagee demands a security from the mortgagor. By giving a security the mortgagor is in a way promising that he or she will make a repayment of the loan which he or she has taken because in the event of any default by the mortgagor, the mortgagee will sell the security in order to recover the amount which is due from the borrower or mortgagor.