Patricia is a real estate licensee in Myrtle Beach who is helping a client purchase a beachfront property. The client asks Patricia to explain the difference between the mortgagor and the mortgagee in a South Carolina mortgage transaction. Which of the following statements is correct?
Correct Answer
D) The mortgagor is the borrower who pledges the property as security, and the mortgagee is the lender who receives the lien
In a South Carolina mortgage transaction, the mortgagor is the borrower (buyer) who pledges the property as collateral by signing the mortgage document. The mortgagee is the lender (bank or financial institution) who receives the mortgage lien as security for the loan. This terminology is standard under SC mortgage law.
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Related Topics & Key Terms
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Related Concepts
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
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