Posted on: 16th Nov, 2009 09:34 pm
I signed both a mortgage document and Promissory note when I refinanced my primary residence.
Are the eventual sales procedes desigated to satisfy both the mortgage and the Promissory Note?
Are the eventual sales procedes desigated to satisfy both the mortgage and the Promissory Note?
Hi etwolfe,
Mortgage agreement document and the promissory note are two slightly different things. Through mortgage agreement, the borrower is obligated to abide by the terms of the loan agreement. But this does not make him legally liable to pay off the loan. When you sign the promissory note, you become fully responsible for the repayment of the mortgage. You do not have to satisfy the mortgage and the promissory note separately. Once you pay off the mortgage in full, you will meet the terms of the mortgage agreement and the promissory note will be released.
Mortgage agreement document and the promissory note are two slightly different things. Through mortgage agreement, the borrower is obligated to abide by the terms of the loan agreement. But this does not make him legally liable to pay off the loan. When you sign the promissory note, you become fully responsible for the repayment of the mortgage. You do not have to satisfy the mortgage and the promissory note separately. Once you pay off the mortgage in full, you will meet the terms of the mortgage agreement and the promissory note will be released.
hi,
The promissory note is a note the buyer gives to the lender promising to repay the amount of the loan plus interest. The note also states the amount of time the buyer has to repay the loan and what action the lender may take if the buyer fails to make the required payments. The note should state the interest rate and specify whether it is fixed or variable.
A mortgage document is used in most states. A mortgage involves only two parties: the borrower and the lender. It creates a lien on the property, which is recorded in the public land records. With a mortgage, the borrower has full title to the property but may not transfer ownership until the debt is paid off and the lien is released.
The promissory note is a note the buyer gives to the lender promising to repay the amount of the loan plus interest. The note also states the amount of time the buyer has to repay the loan and what action the lender may take if the buyer fails to make the required payments. The note should state the interest rate and specify whether it is fixed or variable.
A mortgage document is used in most states. A mortgage involves only two parties: the borrower and the lender. It creates a lien on the property, which is recorded in the public land records. With a mortgage, the borrower has full title to the property but may not transfer ownership until the debt is paid off and the lien is released.