Mortgage document – What purpose does it serve?

Mortgage is a legal document, which pledges a specific property to the lender as a security for payment of a debt. Notary Public signs as the witness of the mortgage document, which establishes a lender’s legal claim on the property if the borrower defaults on the payment.

Information required for a mortgage legal document

A mortgage legal document requires the following information.

Name of the borrower
Address of the borrower (address of the mortgaged property)
Name of the lender
Principal loan amount

Apart from above details, the name of the state and county also need to be mentioned in the document. Along with this, the Notary Public is required to sign (with seal and date) as the witness of the deed.

Purpose served by a mortgage legal document

Through a mortgage document, the borrower agrees to the following:

Borrower cannot modify the mortgage without lender’s permission.
If the borrower fails to carry out the agreements as listed, then the lender can do and pay for what is necessary in order to protect his rights.
If borrower transfers legal ownership or security interest (voluntarily or involuntarily), then the lender can declare entire debt as due and payable.
If the borrower defaults on loan for 15 days, then the lender has the right to collect all costs and expenses, which is inclusive of attorney’s fees.
Borrower should purchase adequate insurance on the property and the coverage should be approved by the lender.
The borrower should not commit any waste and also shouldn’t permit others to commit constructive waste on the property.

Borrower needs to sign the mortgage document with the date as otherwise, the transaction becomes invalid.

Related Resources:

Best mortgage rates for mortgage refinancing – Best mortgage rates in your local area. Shop for the lowest interest rates and get a rate quote for your home loan, home mortgage refinance, second mortgage or home equity loan. Lender411.com – The Key to a Smart Loan.