In a mortgage transaction, who is the borrower?

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Study for the Chartered Property Casualty Underwriter 530 Exam with flashcards and multiple choice questions. Each question has hints and explanations to enhance your understanding and prepare you thoroughly.

Multiple Choice

In a mortgage transaction, who is the borrower?

Explanation:
In a mortgage transaction, the borrower is the mortgagor. The mortgagor signs the promissory note and gives the lender a mortgage or deed of trust that pledges the property as security for the loan, so the lender holds a lien until the debt is repaid. The mortgagor typically remains the owner on title, but the lien encumbers the property as collateral. The mortgagee is the lender who holds the lien, a grantee is someone who receives title in a deed, and a vendor is the seller in a real estate sale.

In a mortgage transaction, the borrower is the mortgagor. The mortgagor signs the promissory note and gives the lender a mortgage or deed of trust that pledges the property as security for the loan, so the lender holds a lien until the debt is repaid. The mortgagor typically remains the owner on title, but the lien encumbers the property as collateral. The mortgagee is the lender who holds the lien, a grantee is someone who receives title in a deed, and a vendor is the seller in a real estate sale.

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