What does the term 'mortgagor' refer to?

The term 'mortgagor' specifically refers to a borrower who is securing a loan against their property. In a mortgage agreement, the mortgagor is the individual or entity that borrows money from a lender, often a bank or other financial institution, to finance the purchase of real estate. By entering into this agreement, the mortgagor allows the lender to place a lien on the property, which serves as collateral for the loan. This means that if the mortgagor fails to repay the loan according to the agreed-upon terms, the lender has the legal right to take ownership of the property through a foreclosure process. This role is fundamental in real estate transactions involving mortgages, emphasizing the relationship of borrowing and security interests in property.