Mortgagee

In depth

The mortgagee is the party receiving the mortgage interest, i.e., the lender. In seller financing through a purchase money mortgage, the seller is the mortgagee. The mortgagee has rights to receive payments, foreclose on default, and sell or assign the mortgage. Misconception: the mortgagee does not hold title; in lien theory states, only a lien. Practically, mortgagees protect themselves by recording the mortgage promptly, requiring property insurance with themselves as loss payee, and using a note servicer to ensure payment compliance. Mortgagees in seller-financed deals often appear in title insurance lender's policies. Selling or assigning the mortgage transfers the rights to receive payments and enforce remedies.