Real Estate Terms Dictionary
Mortgage Spreader Agreement
Definition of 'Mortgage Spreader Agreement'
A Spreader Agreement is a document which extends the reach of a mortgage to other properties and sometimes to new lenders or borrowers.
What is a Mortgage Spreader Agreement:
Mortgage companies may use the Mortgage Spreader Agreement to secure more collateral for the loan. This means that, when a borrower fails to make the mortgage payments on a property, under the Mortgage Spreader Agreement,
the lender can foreclose on all the properties listed in the agreement, even if the others are up to date on their payments.
The borrower may agree to close a Mortgage Spreader Agreement in order to save money on paying larger mortgage recording fees when securing new mortgages for properties.
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.