Also known as: mortgage holder · mortgage-holders · mortgage holders · mortgagee
Written by attorneys · grounded in primary & secondary sources — see below
The party that holds a mortgage as security for repayment of a debt or performance of an obligation.
Global Nature borrowed funds from West Green bank to purchase wetlands and signed a mortgage pledging the tract as collateral. When Global Nature later defaulted, West Green as mortgage-holder initiated foreclosure to recover the debt from the land itself.
Sun Flight obtained a loan from Ridge Aerospace secured by a mortgage on a hangar. Under the title theory followed in the jurisdiction, Ridge Aerospace as mortgage-holder held legal title while Sun Flight retained only the equity of redemption.
After Metro Haulage paid the full balance on its terminal yard loan, Apex Finance as mortgage-holder executed and recorded a satisfaction releasing the mortgage from the public records.
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When Lake Wind defaulted on its solar farm loan, Dusk Wind as mortgage-holder accepted a voluntary deed conveying the parcel in full satisfaction of the debt instead of pursuing foreclosure.
After Harborview LLC defaulted on its construction loan, Midland Regional Bank as mortgage-holder commenced judicial foreclosure to terminate Harborview's equity of redemption and obtain the condominium tower.
When Bayview Medical Group missed payments on its medical office building loan, Harbor Bank Credit Union as mortgage-holder exercised its acceleration clause and declared the entire balance due before initiating foreclosure.
The mortgage-holder may foreclose on the property to satisfy the secured obligation. The mortgage creates a security interest that permits the holder to terminate the mortgagor's equity of redemption through foreclosure proceedings.
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Under title theory the mortgage-holder holds legal title and may take possession upon default. Under lien theory the mortgagor retains title and the mortgage-holder must rely on foreclosure to obtain possession.
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Payment of the full debt entitles the mortgagor to a release or satisfaction from the mortgage-holder. Recording the satisfaction clears the lien from public records.
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The transfer must be voluntary and supported by consideration in the form of debt discharge. Courts examine the transaction for duress or unfairness before enforcing it against the mortgage-holder.
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The mortgage-holder may pursue judicial foreclosure through court action or nonjudicial foreclosure under a power of sale if permitted by the mortgage and state statute.
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The mortgage-holder may accelerate upon the mortgagor's default such as failure to pay an installment. The clause must be exercised in good faith and some jurisdictions require prior notice and a cure period.
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…policy from a Wisconsin insurer. That policy, the Government points out, safeguarded the interests of the homeowner and the mortgagee. Third, the homeowner "used" the dwelling to receive natural gas from sources outside Indiana. See Brief for United States 19-23. The Government correctly observes that § 844(i) excludes…