Who is referred to as the mortgagee in a mortgage arrangement?

In a mortgage arrangement, the term "mortgagee" refers to the lender. This is the party that provides the funds for the loan and holds the mortgage as a security interest in the property until the borrower repays the debt according to the terms agreed upon in the mortgage contract. The mortgagee has the right to take possession of the property if the borrower defaults on the loan.

Understanding the relationships in a mortgage transaction is crucial in real estate. While the borrower may sometimes be the property owner, they are referred to as the "mortgagor" in this context. The co-signer is typically an additional party who guarantees the repayment of the loan but does not hold the primary obligation for it. Recognizing these roles clarifies the responsibilities and rights of each party involved in the mortgage agreement.