What Is A Real Estate Mortgage Lender Note?

A real estate mortgage lender note is the document that explains the repayment terms as agreed upon between the lender and the borrower.

Also called promissory notes, real estate mortgage lender notes detail the agreement between the lender and the borrower. It outlines how much is being borrowed, as well as how and when the loan should be repaid. The interest rate that is to be repaid will also be indicated on this document.

This document is signed by the borrower as a promise to repay the loan based on the specified terms on the note.

In some jurisdictions, mortgage lenders are required to produce the note if they are attempting foreclose on the loan. This note may be the only document that a lender can use in a court of law to prove that the borrower is in breach of contract if they miss payments. The note verifies that the lender is in fact the owner of the debt. If the lender is unable to present the note, they may not be able to foreclose on a loan.

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