Real Estate Terms Dictionary
Definition of 'Master Mortgage'
The Master Mortgage is a document created when a property is purchased for the first time. It is filed in the public land records and its purpose is to keep track of the initial mortgage and of any liens that might be associated with the property.
What is a Master Mortgage:
Mortgage lenders Fannie Mae and Freddie Mac are the creators of the master mortgage form. All lenders have been required to file a master mortgage since this type of document since it was created.
One of its main advantages is that those involved in the sale and financing of real estate can easily consult the document to determine information such as the existence of a mortgage and of any liens and the name of the mortgage originator. When the property is sold, a second mortgage replaces the first master mortgage.
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.