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PARTIES TO A MORTGAGE

PARTIES TO A MORTGAGE. Mortgagor – The property owner who has borrowed money to purchase property and has, in turn, given the lender a mortgage. The Mortgagor is typically the named insured. Mortgagee – The bank or lender whose interest in the property is secured by the mortgage.

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PARTIES TO A MORTGAGE

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  1. PARTIES TO A MORTGAGE Mortgagor – The property owner who has borrowed money to purchase property and has, in turn, given the lender a mortgage. The Mortgagor is typically the named insured. Mortgagee – The bank or lender whose interest in the property is secured by the mortgage.

  2. FORECLOSURE • Judicial Foreclosure Requires filing of lawsuit when mortgage does not contain Power-of-Sale Clause. • Non-Judicial Foreclosure Power-of-Sale Clause gives lender the power to sell the property without a lawsuit. MN – 8 week Notice of Sale must be provided. • Right-of-Redemption MN – Borrowers have up to one year to redeem by paying the past-due amount.

  3. MORTGAGEE’S DUTIES • Notify the insurer of any change in ownership. • Notify the insurer of any change in occupancy. • Notify the insurer of any substantial change in risk. • Pay any premium due on demand if the insured has neglected to pay the premium. • Submit a signed, sworn Statement of Loss if requested.

  4. IMPACT OF FORECLOSURE BEFORE LOSS & AFTER LOSS • Foreclosure After Loss “Full Credit Bid” vs. Bid For Less Than The Unpaid Mortgage Debt • Foreclosure Before Loss Extent of Recovery – Full Amount of Loss Up To Policy Limits

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