Transfers of Mortgages and Mortgaged Property
Learn about the transfer of mortgages and mortgaged property, including subrogation, assumption of mortgages, sales subject to mortgages, and restrictions on transfer.
In this lesson, we’ll discuss the transfer of mortgages and mortgaged property. We’ll see what happens when mortgaged property is sold, and how mortgages and notes can be transferred from one mortgagee to another.
Let’s start with the sale of the property. In general, a mortgagor is free to sell the property during the mortgage unless the mortgage agreement provides otherwise. If the mortgage prohibits a sale, but the mortgagor sells anyway, the mortgagor’s violation has no effect on the...