An Assignment of Mortgage refers to the legal process in which the rights and responsibilities of a mortgage are transferred from one party to another. This assignment typically occurs when the original mortgage holder chooses to sell or transfer its interest in the mortgage to another entity or individual.
In an Assignment of Mortgage, the original mortgage lender, known as the assignor, transfers all of its rights and obligations associated with the mortgage to the assigned party, referred to as the assignee. This transfer is often accomplished through a formal written agreement, which outlines the terms and conditions of the assignment.
The assignee, upon receiving the assignment, assumes all the rights of the assignor, including the right to receive mortgage payments and enforce the terms of the original loan. This means that the assigned party becomes the new legal owner of the mortgage and is entitled to all the benefits and protections that come with it.
Furthermore, an Assignment of Mortgage does not affect the terms and conditions of the original mortgage agreement. All rights, obligations, and terms specified in the original document remain intact. The only change is in the ownership of the mortgage, which now belongs to the assignee.
It is important to note that an Assignment of Mortgage should be recorded in the public land records to ensure its validity and protect the assignee's rights. By doing so, the assignee gains priority over subsequent mortgage assignments and other potential claims on the property.
