An assignment of mortgage documents the transfer of a mortgage from an original lender or borrower to another person or entity. Lenders regularly sell mortgages to other lenders. Less often, a borrower transfers the mortgage to someone else who assumes the mortgage. In order to provide proper notice, assignments of mortgage should be in the proper format and recorded at the Registry of Deeds. The assignment should specify the name of the original lender and borrower, as well as the person or entity to which the mortgage has been transferred. If you are a lender or borrower concerned about an assignment of mortgage, the Boston real estate lawyers at Pulgini & Norton can provide knowledgeable advice.
Assignment of MortgageLenders or holders of mortgages often assign them to other lenders. The person or entity that receives the assignment will step into the place of the original lender. An assignment of mortgage should be in the appropriate format to provide notice to others. It should describe the property so that everyone understands which piece of property is attached to the assignment. It should also include the names of the various parties, contact information, and the date of the assignment. When a lender assigns a mortgage to another lender, the document will need to state the identity of the borrower. If a borrower assumes a mortgage, it should identify the lender.
Mortgages are often transferred to other lenders several times before being paid off. Lenders do not need to notify borrowers when selling a mortgage. Borrowers do not have a say in whether the mortgage is sold to another lender. However, the new lender is supposed to notify the borrower of the sale and give the borrower information on how to pay the new lender. In some cases, a borrower can try to renegotiate the terms of the loan, or, if the borrower does not want to continue with the new lender on the loan, the borrower can apply for a new mortgage to pay off the sold loan. When a new borrower assumes a mortgage, however, they must show that they have the financial ability to pay off the mortgage and that they understand the terms of the obligation that they have undertaken.
In Massachusetts, unlike some other jurisdictions, an assignment or mortgage must be in writing and then filed in the Registry of Deeds. A blank assignment is invalid. This is an important point because under case law, if the assignment is blank, a foreclosure sale related to the mortgage will be void. A foreclosing entity must obtain an assignment of mortgage in order to foreclose.
Once a mortgage has been paid, the holder should record a satisfaction in the proper written format to give notice to others that it no longer has a lien on the property.
Explore Your Options with a Real Estate Lawyer in the Boston AreaOur Boston real estate attorneys can help you understand the requirements related to an assignment of mortgage and the consequences of assuming or assigning a mortgage. Our firm also advises and represents sellers, lenders, buyers, and associations in Cambridge, Andover, and Quincy, among other Massachusetts communities. Contact Pulgini & Norton at 781-843-2200 or through our online form for a free consultation with a home mortgage attorney.