In the mortgagor/mortgagee relationship, who is the mortgagor?

In the context of a mortgage, the mortgagor is the individual or entity that borrows money to purchase a property, using that property as collateral for the loan. This borrower, typically a customer, is the one who takes out the mortgage and commits to repaying the loan according to the terms agreed upon with the lender.

In this relationship, the customer (mortgagor) receives funds from the lender (mortgagee), who is usually a bank or financial institution, to buy the property. Throughout the term of the mortgage, the mortgagor maintains ownership of the property but gives the lender a secured interest in it until the debt is fully paid off. This means that if the mortgagor fails to make payments as agreed, the mortgagee has the right to foreclose on the property to recover the owed amount. Recognizing this structure is crucial for understanding the dynamics of lending and borrowing in property transactions.