Do You Know the Difference Between Mortgagor Vs Mortgagee?

Many home buyers are unclear about the difference between mortgagor vs mortgagee. It’s easy to get confused because some of the terms in mortgage agreements are used interchangeably. For instance, the term mortgagor can also be referenced as grantor or consignor.

The distinction concerning mortgagor vs mortgagee is the first makes reference to the individual borrowing money and the second references the entity or person providing the funding.

Another way to remember the difference is using word association tricks. For instance, words used to describe the borrower – mortgagor, grantor, consignor – include the letter ‘o’. Words used to identify the lender – mortgagee, grantee, and consignee – include the letter ‘e’.

Mortgage notes are secured with a promissory note which is a written promise to pay back borrowed funds. Real estate IOUs are legal documents, so mortgagors should read the fine print before attaching their signature.

Promissory notes supply all parties involved with details of the transaction. The document should include the loan principal, rate of interest, dates and amounts of payment installments, prepayment penalty amount, default clause, and date of maturation.

Loan principal pertains to the cost of the house. Lenders charge interest against the principal amount. The rate of interest is based upon various factors including the type of loan and mortgagors’ FICO scores. Borrowers that possess excellent ratings obtain lower interest rates than those with good or average scores.

The majority of lenders assess prepayment penalties in the event borrowers pay off their loan early. Mortgagors need to review the Truth in Lending (TIL) statement which is provided with loan contracts. Additionally, people who apply for a loan are given a Good Faith Estimate which includes the amount of the penalty.

There are good and bad points to getting into mortgage loans which contain a prepayment clause. The upside is these kinds of loans carry a low interest rate. The downside is mortgagors could generate losses when they sell their house or pay back the loan too soon.

The greatest error buyers can make is neglecting to comparison shop lenders. Looking around for the best deal can help buyers obtain lower interest rates and decreased settlement costs. Shaving a quarter percent off interest rates can add up to thousands in savings over the duration of the loan.

Few people would argue that buying a house is a daunting process. However, learning how the process works will improve confidence and enable buyers to make informed decisions.

Several sources provide information about homeownership. A few of the more trustworthy include the Department of Housing and Urban Development, Fannie Mae Homepath, and Freddie Mac Homesteps. Additionally, the FDIC offers a complimentary home buying guide filled with valuable information.

For must of us, buying real estate is the most significant purchase we’ll ever get involved with. For this reason, it is crucial to learn everything possible to ensure a smooth home buying experience. Otherwise, uninformed decisions could result in foreclosure that wreaks havoc on credit ratings.

Finding the Idea Log Cabin Dealers

It is difficult, if not impossible, to have experience in all areas. At one point or the other, you will require the services of others to accomplish what you cannot on your own. This is true when it comes to cabin constructions. When you really need a high quality one, then it becomes necessary to find the ideal dealer to offer you all the services that are required. For you to get the best work there are some tips that can help you to decide on the best company to go for. They include:

Know what you want

You need to have a clear plan for what you want so as to act on it. When you are specific, you will be able to come up with estimates that are very specific from the contractors as you interview them.

Recommendations

If there is anyone close to you who has already handled such a project, then they can offer you some very valuable recommendations. They can tell you if the dealers they used gave satisfactory results and if they are worth the money.

Ask questions

It is very important to ask specific questions. You should get straight answers and try to determine how honest they are. The dealer should be well informed about different things regarding these kinds of houses. Salespeople should not be the ones to answer any questions that you may have because they may only be after a hefty commission. Salespeople can say anything. Talk to the people who will be handling your project directly.

References

You should definitely ask for references. If a company does not have any references, then something may be really off. The respected and successful contractors should have many happy clients to support them. Check the references and find out how recent they are. Getting older references is also important since you will know that their standards have not wavered over time. Feel free to ask all questions regardless of how hard they may sound.

Documentation

The other things that will help you know whether a company is legitimate or not is the documents. They should offer insurance, certifications, and business licenses so as to guarantee that they are indeed operating legally. Online reviews can also help to a great extent. All contractors should be reputable and easy to verify. They should also have contact information as well as a physical address.

Everything in writing

Regardless of whether you know the people personally or not, it is always important to put everything down in writing. Outline all things that need to be done as well as the deadlines and the payment schedules. The list of materials and the work schedule should also be in writing. You also need to get permits if needed. Anyone who does not want to deal with these sections should not be trusted.

Price

You should never base a decision on price only. There are other things that should be considered before you start comparing the prices. This includes communication, reliability, work quality, and reputation.

Deeds – Using Deeds to Research Your House History

As mentioned in my article “Researching House History”, before you can begin to research a house, you need to have the legal description of the property, which can be obtained by looking at the deed you received when you purchased the property. If you are extremely lucky, you received an abstract of the property when you bought your house. Also referred to as a chain of title, an abstract contains a legal description of the property as well as all transactions on the property back to the patentee – the original purchaser of the property from the federal government. References to deeds, mortgages, wills, probate records, divorces, and lawsuits may be included in the abstract. In the past, abstracts were routinely prepared and updated by the owner’s mortgage company each time a home changed hands. This practice went by the wayside when title insurance began to replace abstracts in the 1970’s. If there is no abstract, you will need to form a chain of title through other records.

Most chain of title searches will begin at your local county Recorder of Deeds office. This office has records and files instruments of writing affecting real property or personal property. Deeds are the beginning point in your search for records, as they will tell you the names of the previous owners as well as provide clues as to what may have been located on the property at the time the deed was drawn up. A deed tells you who owned the property, the purchase price, provides a legal description, and possibly, if there was a mortgage. It also may mention the existence of the house and additions to it. A sharp increase in the purchase price may indicate that a building was added to the property. Pay special attention to the legal description in each deed that you come across to make certain you are still looking at the correct property. Just because the correct grantee or grantor is listed doesn’t mean it is necessarily your property. Make sure each legal description matches yours.

Before beginning your search through the deeds, you will need to be familiar with two terms – Grantor and Grantee. The Grantor is the seller of the property, and is usually listed first. The Grantee is the buyer. So in looking at your own deed, you will be listed as the Grantee and the person you bought the house from will be shown as the Grantor. Starting with yourself as the buyer, you can work your way backwards through the deed indexes to find prior sellers/buyers. Usually the previous deed will be mentioned in the present deed, and you can see when the current Grantor was a Grantee. If not, you will need to look up the current Grantor in the Grantee Indexes. In fact, it is advisable to look for all of your property owners in both indexes, because sometimes the property transaction only appears in one of the indexes. This is the method you will use to work your way back through the owners of the property. I made photocopies of each deed I came across because I found it interesting to read the different descriptions of the property and because sometimes the instrument was not a just listed as a deed but was noted as something else. For example, if you come across a Deed of Trust, it generally does not mean that the property changed hands, but instead the grantor gives title of the property to a grantee (usually the person lending the money) until the grantor pays the loan back in full. It is not necessary to make the copies, but do make note of anything different about the deed.

As you come across deeds on your property, check the deeds that were recorded on the pages before and after your deed. You might find other deeds relating to your property. A caution – remember that while the deeds will tell you who owned the property, they won’t tell you who lived there. You will need to search other records to determine who actually occupied the house.

If you come across any references to court cases within your deeds, make note of them on your reference sheet as they might contain useful information about your house or its owners. Ask the reference person in the Recorder of Deeds office where you might locate the listed records.

Make a list of all the families who owned your house, showing the dates they bought and sold the property. This sheet will be a handy reference of all the names and time periods as you search through other records to learn about your families.

Now, if all of this seems overwhelming to you or you are just not interested in doing the research yourself, you can have a Title Insurance Company obtain the list of owners for you. There will be a fee charged for the service, but if you provide the company with a legal description of your property they can do the work for you.