What does assignment mean and why would a lender want to assign a mortgage loan?
Keeping this in consideration, what does it mean when a mortgage is assigned?
An assignment of mortgage is a document which indicates that a mortgage has been transferred from the original lender or borrower to a third party. Assignments of mortgage are more commonly seen when lenders sell mortgages to other lenders. This document indicates that the loan obligation has been transferred.
Similarly, why is an assignment of mortgage needed? When one bank sells the debt to another bank, the following actions are generally done to complete the transaction. (An assignment of mortgage is necessary to assign the original bank's rights under the mortgage, including the right to foreclose if you don't make payments, to the new owner of the loan.)
Besides, what is the lender's right of assignment?
Lender's Right to Assign Sample Clauses. Lender's Right to Assign. Lender shall have the right to assign, transfer, sell, negotiate, pledge or otherwise hypothecate this Agreement and any of its rights and security hereunder, including the Note, Security Instrument, and any other Loan Documents.
Does an assignment of mortgage have to be recorded?
Assignment of mortgage should be recorded before the government authority that deals with property ownership, property taxes, etc. If you are a borrower and you receive a notice that your mortgage has been transferred to another lender, you should get in touch with your lender and confirm it.