Real Estate Terms Dictionary
Assignment of Mortgage
Definition of "Assignment of Mortgage"
The act of transferring a mortgage from one party to another is called assignment of mortgage.
What does Assignment of Mortgage mean:
The most common example of an Assignment of Mortgage is when a mortgage lender transfers/sells the mortgage to another lender. This can be done more than once until the balance is paid.
The lender does not have to inform the borrower that the mortgage is being assigned to another party. The new lender, however, should send the borrower a notification informing him or her of the sale and making clear the terms of the mortgage payments.
If a borrower transfers the mortgage to another borrower, this is called an assumed mortgage. Lenders are usually against assumable mortgages because they cannot be sure that the new payer has the financial stability necessary to continue making the loan payments.
Here's a real-life example from one of the properties researched on PropertyShark:
The glossary is intended to provide real estate professionals and home buyers with a basic understanding of various specialized terms related to legal rights over a property. All terms appear in public records such as ACRIS. We do not take responsibility for the legal accuracy of the definitions provided and ask that use of these explanations in a legal setting be made only after checking with a lawyer or another specialist in the field.