Assumption of mortgage involves assuming the obligations of a mortgagor toward a mortgagee, usually as part of the purchase price of real estate. This entails the purchaser taking personal liability for the debt unless a novation releases the original borrower.
The Equity of Redemption is a legal right of mortgagors to reclaim their property after defaulting, by settling the entire mortgage debt including costs and interest before foreclosure occurs.
A mortgage is a legal agreement by which a sum of money is lent to a borrower for purchasing property, with the property serving as collateral. The borrower is the mortgagor, and the lender is the mortgagee.
A mortgagee is an entity or individual that holds a lien on or title to a property as security for a debt, typically a lender.
A mortgagor is an individual or entity that borrows money through a mortgage by pledging property as security for the loan.
A reduction certificate is a document in which the mortgagee (lender) acknowledges the sum due on the mortgage loan. It is typically used when mortgaged property is sold and the buyer assumes the debt.
