parties
Mortgagor
The borrower in a mortgage transaction, granting a lien on the property to the lender as security for the loan.
In depth
The mortgagor is the party giving the mortgage, i.e., the borrower. In a purchase money mortgage seller-finance deal, the buyer is the mortgagor and signs both the promissory note and the mortgage. Misconception: the mortgagor remains the legal owner of the property; the mortgage is just a lien. Practically, mortgagors must maintain the property, pay taxes and insurance, and make timely loan payments to avoid default. The mortgagor's homestead, redemption, and reinstatement rights vary by state. In FSBO and seller-financed transactions, the mortgagor (buyer) and mortgagee (seller) negotiate terms directly, allowing flexibility unavailable with institutional lenders.
Educational content only. Definitions reflect typical usage in US owner-finance and FSBO transactions; statutes and case law vary by state. Consult a licensed real-estate attorney for fact-specific guidance.