The borrower is also called the mortgagor. The mortgagor uses a mortgage to commit a promise for the real property to the lender as security against; this is the debt for the rest of the value of the property therefore it is also called the hypothecation. In legal terms, the creation of a mortgage gives the legal title of the land to the mortgagee and an equitable title to the mortgagor this is called the equity of redemption..
The legal title, however, only exists as a security for a debt and does not convey any title or powers associated with real property. The mortgage instrument contains two parts:
1. The mortgages, which are pledge.
2. The promissory note, which is the actual evidence of the debt and promise to repay.
To protect the lender, a Home mortgage is recorded in the public records creating the right to hold another persons property until the debt on it is paid. when there are multiple liens, order of recording determines priority. Since mortgage debt is often the largest debt owed by the debtor, banks and other mortgage lenders run title searches of the real property to make certain that the lien of the mortgage is prior to anyone else's claim.There is a Tax lien, in some cases, which will come ahead of mortgages. For this reason, if a borrower has delinquent property taxes, the bank will often pay them to prevent the lien holder from foreclosing and wiping out the mortgage.
