Also known as: mortgagees · lender · secured party
Written by attorneys · grounded in primary & secondary sources — see below
The lender or creditor in a mortgage transaction who holds a security interest in real property to secure repayment of a debt or performance of an obligation. The mortgagee may foreclose upon default and is entitled to satisfaction of the debt from the property or its proceeds.
Malcolm McKinley borrowed funds from Momentum Capital to purchase a warehouse. When McKinley missed several payments, Momentum Capital initiated foreclosure proceedings under the mortgage. The mortgagee recovered the outstanding balance through sale of the property.
Marcus Mitchell granted a mortgage on his commercial building to Meridian Motors under a title-theory jurisdiction. Meridian Motors received legal title while Mitchell retained only the equity of redemption. Upon Mitchell's default the mortgagee exercised its rights to possession and foreclosure.
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Mason McCarthy repaid the full loan balance to Midwest Airlines ahead of schedule. The mortgagee executed and recorded a satisfaction of mortgage releasing its security interest. Recording cleared title so McCarthy could sell the property free of the lien.
Megan Moore transferred her home by deed in lieu of foreclosure directly to Maxwell Manufacturing. The mortgagee accepted the voluntary conveyance in full satisfaction of the debt and released Moore from further liability. Junior liens remained subject to separate negotiation.
Michelle Murphy defaulted on payments secured by a deed of trust naming Momentum Capital as beneficiary. The mortgagee directed the trustee to sell the residence at a nonjudicial foreclosure sale after proper notice. Proceeds satisfied the debt and terminated Murphy's equity of redemption.
Melanie Morris sold her mortgaged rental property to a third party without notifying Meridian Motors. The mortgagee invoked the due-on-sale clause and accelerated the entire remaining balance. Morris repaid the loan in full to avoid foreclosure.
The mortgagee is the lender who receives the mortgage as security for repayment of the loan. The borrower is the mortgagor who grants the security interest. This distinction appears consistently across property hornbooks and case materials.
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The mortgagee may foreclose the security interest to obtain the property or its value and satisfy the debt. Foreclosure procedures vary by jurisdiction and mortgage theory but uniformly allow the mortgagee to terminate the mortgagor's equity of redemption.
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No. Under the title theory the mortgagee holds legal title while the mortgagor retains only the equity of redemption. Under the lien theory the mortgagor keeps legal title and the mortgage creates only a lien. Intermediate theory blends both approaches.
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The mortgage is discharged upon full payment of the debt. The mortgagee must execute and record a satisfaction or release to clear the public records and restore clear title to the mortgagor.
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Yes. A voluntary deed in lieu transfers the property to the mortgagee in satisfaction of the debt and avoids foreclosure. The transaction must be voluntary and supported by consideration. Courts examine it for duress or unfairness.
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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…