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A disadvantage of a mortgage assignment is the consequences of failing to record it. Under most state laws, an entity seeking to institute foreclosure proceedings must record the assignment before it can do so. If a mortgage is not recorded, the judge will dismiss the foreclosure proceeding.
In a mortgage assignment, your original lender or servicer transfers your mortgage account to another loan servicer. When this occurs, the original mortgagee or lenders interests go to the next lender. Even if your mortgage gets transferred or assigned, your mortgages terms should remain the same.
If you receive a document from the lender or the county that is a release of mortgage (or the like) and the document indicates it has been recorded by the county, that document is enough to know the county shows your mortgage lien as released.
An assignment of mortgage gives the loan sellers rights under the mortgage, including the right to foreclose if the borrower doesnt make payments, to the new owner of the loan.
An assignment transfers all the original mortgagees interest under the mortgage or deed of trust to the new bank. Generally, the mortgage or deed of trust is recorded shortly after the mortgagors sign it, and, if the mortgage is subsequently transferred, each assignment is recorded in the county land records.
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The most common example of an Assignment of Mortgage is when a mortgage lender transfers/sells the mortgage to another lender. This can be done more than once until the balance is paid. The lender does not have to inform the borrower that the mortgage is being assigned to another party.
At closing, borrowers sign a document granting the original lender the right to assign the mortgage elsewhere. This means the original lender doesnt have to ask for permission to assign the mortgage but can do so whenever it wants to.
So whoever is a borrower on the Note is personally liable for paying back the debt to the lender. The Note is not recorded in the Courthouse, so the original Note is returned to the lender upon closing.
Home buyers will sign many papers as part of the closing process on the purchase of a piece of property. However, the two most important include the mortgage note (which includes all of the terms regarding the repayment of the debt) and a mortgage.
You can transfer a mortgage to someone else as long as the loan is assumable. The new borrowers will be treated as if they were initiating a new loan for themselves. If your mortgage is not assumable, you still have options even if your lender says no.

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