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   Home            3. Is "mortgage" a Noun or a Verb?
  
 
 
 
 
    3. Is "mortgage" a noun or a verb?
 
 
MORTGAGOR
BUYER/Borrower 
             
  MORTGAGE
 ⇒⇒⇒⇒⇒⇒⇒⇒
 
(pledge of the property to secure the note)
MORTGAGEE 
 
LENDER 
  
 NOTE
                 
 
 
 
Much of the confusion concerning mortgages and notes today actually stems from a semantic problem:  Is "mortgage" a noun or a verb?  Unfortunately, many people use the word "mortgage" to mean a loan, saying things such as "I got a mortgage from the bank"; or "Who owns the mortgage?".  This leads to confusion since "mortgage" is really a pledge of property as security, and does not have a separate existence from the note that it guarantees.  Since "mortgage" really means to pledge, which is a verb, it should not be used as a noun.  Here are some common misuses of the word "mortgage":
 
WRONG    
CORRECT 
I got a mortgage from the bank.             
I got a loan from the bank. 
I took a mortgage.          
I borrowerd money and I mortgaged the house. 
I signed the mortgage.  
I signed the mortgage document.
The owner of the mortgage is not the owner of the note.      
The title owner of the note/mortgage is not the equitable owner of the note/mortgage. 
 
While the difference between relating to the word "mortgage" as a noun or a verb might seem trivial, we will see that misuse of the word has caused endless headaches, misunderstandings, confusion, and legal wrangling.
 
Copyright David Hostyk Feb. 1, 2011