The typical home mortgage comprises two closely related transactions. The first is a contract between the borrower and the lender under which the lender agrees to pay the borrower money in exchange for a promise to repay that money with interest. This is the note. As a condition for entering into that contract, the lender requires the borrower to give the lender a security interest in their property. This is the mortgage. The borrower is the mortgagor and the lender is the mortgagee.
The lenders’ right under the mortgage is like a non-possessory property interest that the borrower effectively repurchases with each payment on the principal of the loan. While the note gives the lender an “in personam” right against the borrower, the security interest gives the lender an “in rem” right against the property. Hence, destruction of the property — say by a hurricane or fire — might destroy the value of the lender’s in rem right, but will not destroy its in personam right to collect the full value of the loan from the borrower even though the property no longer exists.
Now, if the homeowners want a chance to save their homes, it’s necessary and imperative to have the mortgage transaction analyzed. Because the FDIC found that 83% of the mortgage transactions have problems, and 76% of the appraisals as well.
There’s only one firm in the country that provides that mortgage transaction analysis service–Mortgage Fraud Examiners www.mortgagefraudexaminers.com
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