What is a mortgagor?

A mortgagor refers specifically to the individual or entity that borrows money from a lender (usually a bank or financial institution) to purchase a property and offers that property as collateral for the loan. This means that the mortgagor is the one who takes out a mortgage, pledging the property in exchange for the funds necessary to complete the purchase.

In this scenario, the mortgagor is responsible for repaying the mortgage loan according to the terms agreed upon, and they retain ownership of the property while holding the debt. If they fail to make the required payments, the lender (or mortgagee) has the right to take possession of the property through foreclosure.

Understanding the role of the mortgagor is essential, especially in the context of real estate transactions, as it delineates the responsibilities and obligations that the borrower takes on when securing a mortgage.