The Note and The Mortgage

June 6, 2015 By Elliot S. Schlissel

If you have purchased a home and financed it through a financial institution, you attended a closing. At that closing, you executed numerous documents. One of those documents is the note. The note is simply an I owe you. The note basically states you are borrowing money from a lender and you promise to pay it back. The note includes the terms of repayment, interest rates, the term of the loan and information concerning late charges and other issues.

The Mortgage

The mortgage and note are two separate documents completely. The mortgage is an agreement which allows the financial institution, who is the lender concerning your property, to have a security interest, or lien, on your property. Another way of looking at the mortgage is you pledge your home as collateral to secure the financial transaction which allows you to buy your home. If the bank does not get paid, they go after the collateral, to wit, your home, to take it back and sell it at auction to repay the note which documents the loan you took from them.

Elliot S. Schlissel is a foreclosure lawyer. He has helped hundreds of New Yorkers stay in their homes. He fights foreclosure lawsuits throughout the Metropolitan New York area and helps his clients obtain mortgage modifications. Elliot and his staff of attorneys can be reached 7 days a week.