Assignment of Mortgage

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.

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Assignment of Mortgage Agreement

STATE OF_____________________
COUNTY OF___________________

FOR VALUE RECEIVED,_______________does hereby sell, assign, transfer, convey and set out to_______________________________, whose address is_______________________________________ , as the Assignee, its successors, representatives and assigns, all its right, title and interest in and to a Warranty Deed executed by__________to______ dated________ , in the principal sum of $________and filed for record in the office of the Clerk of Superior Court of__________County,   State_______in Deed Book ________, Page_______, aforesaid records.

THE ASSIGNOR HEREIN specifically sells, assigns, transfers and conveys to the above Assignee, its successors, representatives and assigns, the aforesaid Warranty Deed, the property described therein, the indebtedness secured thereby, together with all the powers, options, privileges and immunities therein contained.

THE ASSIGNOR HAS THIS day sold and assigned to the Assignee herein the Note secured by said Warranty Deed, without recourse on the Assignor, and this transfer is made to secure the Assignee, its successors, representatives and assigns in the payment of said Note.

IN WITNESS WHEREOF, the Assignor has hereunto set its hand and corporate seal this the___________day of________, 20__________.

Signed, sealed and delivered
in the presence of:

_____________________________        By:_____________________________
Witness                                                           Name:
Title:
_____________________________
Notary Public
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