Which term describes the party who borrows money secured by a mortgage?

Which term describes the party who borrows money secured by a mortgage?

• A. Mortgagor
• B. Lienholder
• C. Mortgagee
• D. Trustee

Answer: (A)

When a loan is secured by real estate, the borrower is the one who pledges the property as security for the loan. This person is called the mortgagor. The lender who provides the funds is the mortgagee. A lienholder is anyone who has a lien on the property, which can include the lender but isn’t the specific term for the borrower. A trustee is involved in certain trust-deed arrangements, holding title on behalf of the lender and borrower, but the borrower themselves is the mortgagor. So, the party who borrows money secured by a mortgage is the mortgagor.

When a loan is secured by real estate, the borrower is the one who pledges the property as security for the loan. This person is called the mortgagor. The lender who provides the funds is the mortgagee. A lienholder is anyone who has a lien on the property, which can include the lender but isn’t the specific term for the borrower. A trustee is involved in certain trust-deed arrangements, holding title on behalf of the lender and borrower, but the borrower themselves is the mortgagor. So, the party who borrows money secured by a mortgage is the mortgagor.