Why one needs assignment of mortgage
The assignment of mortgage is a legal document which shows the mortgage is transferred from the original lender to a third party. This document is prepared when the lender sells mortgage to other lenders. The document describes about the loan obligations that has been transferred, so that there will be no confusion about the piece of real estate which is under discussion. The document should include details such as the name of original parties, the name of a third party, contact information and date the assignment of the mortgage becomes valid. The document will be filed in a government office which handles property tax and ownership record. You must be aware that such documents will not be recorded for several months, if there is a backlog of documenting material which has to be gone through.
The need of assignment of mortgage
When a mortgage assignment occurs, the bank will usually want to retain some rights, such as right to foreclosure of home due to non payment. The banks right is recorded in a separate document from one which assigns, mortgage to the third party. Like any other contract or assignment, this document has to be prepared with the assistance of a lawyer. Since the process includes the involvement of several different parties, so preparing a mortgage assignment can be sometimes complicated. One main benefit of preparing this document is that it allows property that’s been on the market to be sold. In some cases it allows buyers to purchase a house without having contact with a bank, for a loan.
