Who holds the mortgage note in real estate?

Your mortgage lender holds the mortgage note until you fully pay off your loan. Once you do that, your lender will send the note to you, along with a notation that your note is paid in full. Often, you will sell your home or refinance to a new mortgage before paying off your mortgage in full. Keep in mind that the mortgage note could be sold or transferred to another servicer on the secondary market. This is a common occurrence. If this happens, the terms of your loan won’t change, your lender will notify you, and you’ll receive notice on where to send your payments.

What happens when a borrower defaults on their mortgage?

If you stop making your mortgage payments, you’ll fall into default on your loan. What happens next varies by lender. Your lender might hit you with late fees for missing payments or paying them late. It can also begin the preforeclosure process by sending you a notice of default if your payment is 90 days late. At 120 days, the official foreclosure process stars. If you fall behind on your payments, you should contact your servicer to learn more about your options and if you’re able to avoid foreclosure.

How do I obtain a copy of my mortgage note?

You’ll receive a copy of the mortgage note when you close on your loan. If you misplace this copy, contact your mortgage lender or servicer and ask for a replacement. You can also find a copy of the mortgage note at your local Recorder of Deeds office.

What Is A Mortgage Note In Real Estate?