MORTGAGE RIGHTS
The World of Securitized Mortgages Real Estate Transactions As We Used To Know Them
Home buyers give two important documents to lenders when taking out a home loan, a note and a mortgage. A note is an IOU. It is the promise to repay the loan. The mortgage gives the lender the right to foreclose if the homeowner does not repay the loan. The homeowner registers the deed to the property with the Registrar of Deeds. This office may have a different name depending on where you live, but every state has an office that tracks the ownership of land. The lender also registers the mortgage with the office in charge of land records. Before home loans were securitized, the lender registered the mortgage in its own name. Securitization changed this traditional method because loans change hands at least twice when a loan is securitized. The parties securitizing loans did not want to pay registration fees every time the loans changed hands so they created the Mortgage Electronic Registration System, commonly known as MERS. Instead of giving a mortgage to the lender, borrowers now give the mortgage to MERS, who acts on behalf of the lender. The purpose of the public land system is to make public information about who owns property and what liens there are against the property. You used the land record system when you bought your home. The title insurance company checked the records to make certain that your seller really owned the property and that all liens against the property would be satisfied before you took title. Liens against the property are paid at the closing so that your property cannot be sold to satisfy the outstanding lien.
NEXT: How Securitization Was Supposed To Work
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
Home buyers give two important documents to lenders when taking out a home loan, a note and a mortgage. A note is an IOU. It is the promise to repay the loan. The mortgage gives the lender the right to foreclose if the homeowner does not repay the loan. The homeowner registers the deed to the property with the Registrar of Deeds. This office may have a different name depending on where you live, but every state has an office that tracks the ownership of land. The lender also registers the mortgage with the office in charge of land records. Before home loans were securitized, the lender registered the mortgage in its own name. Securitization changed this traditional method because loans change hands at least twice when a loan is securitized. The parties securitizing loans did not want to pay registration fees every time the loans changed hands so they created the Mortgage Electronic Registration System, commonly known as MERS. Instead of giving a mortgage to the lender, borrowers now give the mortgage to MERS, who acts on behalf of the lender. The purpose of the public land system is to make public information about who owns property and what liens there are against the property. You used the land record system when you bought your home. The title insurance company checked the records to make certain that your seller really owned the property and that all liens against the property would be satisfied before you took title. Liens against the property are paid at the closing so that your property cannot be sold to satisfy the outstanding lien.  MORTGAGE RIGHTS
The World of Securitized Mortgages Real Estate Transactions As We Used To Know Them
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
Home buyers give two important documents to lenders when taking out a home loan, a note and a mortgage. A note is an IOU. It is the promise to repay the loan. The mortgage gives the lender the right to foreclose if the homeowner does not repay the loan. The homeowner registers the deed to the property with the Registrar of Deeds. This office may have a different name depending on where you live, but every state has an office that tracks the ownership of land. The lender also registers the mortgage with the office in charge of land records. Before home loans were securitized, the lender registered the mortgage in its own name. Securitization changed this traditional method because loans change hands at least twice when a loan is securitized. The parties securitizing loans did not want to pay registration fees every time the loans changed hands so they created the Mortgage Electronic Registration System, commonly known as MERS. Instead of giving a mortgage to the lender, borrowers now give the mortgage to MERS, who acts on behalf of the lender. The purpose of the public land system is to make public information about who owns property and what liens there are against the property. You used the land record system when you bought your home. The title insurance company checked the records to make certain that your seller really owned the property and that all liens against the property would be satisfied before you took title. Liens against the property are paid at the closing so that your property cannot be sold to satisfy the outstanding lien.  MORTGAGE RIGHTS
The World of Securitized Mortgages Real Estate Transactions As We Used To Know Them
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
Home buyers give two important documents to lenders when taking out a home loan, a note and a mortgage. A note is an IOU. It is the promise to repay the loan. The mortgage gives the lender the right to foreclose if the homeowner does not repay the loan. The homeowner registers the deed to the property with the Registrar of Deeds. This office may have a different name depending on where you live, but every state has an office that tracks the ownership of land. The lender also registers the mortgage with the office in charge of land records. Before home loans were securitized, the lender registered the mortgage in its own name. Securitization changed this traditional method because loans change hands at least twice when a loan is securitized. The parties securitizing loans did not want to pay registration fees every time the loans changed hands so they created the Mortgage Electronic Registration System, commonly known as MERS. Instead of giving a mortgage to the lender, borrowers now give the mortgage to MERS, who acts on behalf of the lender. The purpose of the public land system is to make public information about who owns property and what liens there are against the property. You used the land record system when you bought your home. The title insurance company checked the records to make certain that your seller really owned the property and that all liens against the property would be satisfied before you took title. Liens against the property are paid at the closing so that your property cannot be sold to satisfy the outstanding lien.  MORTGAGE RIGHTS
The World of Securitized Mortgages Real Estate Transactions As We Used To Know Them
 MORTGAGE RIGHTS The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.