Complete Legal Arizona Assignment Mortgage Forms For Free

The purpose of the mortgage or deed of trust is to provide security for the loan that's evidenced by a promissory note. Loan Transfers. Banks often sell and buy mortgages from each other. An "assignment" is the document that is the legal record of this transfer from one mortgagee to another.

Assignments are generally freely permitted in most modern mortgage agreements. Once the borrower has received proper notice of the assignment, payments will be made to the new creditor. A mortgage assumption occurs when a buyer agrees to take on the seller's current loan and mortgage obligations.

In a mortgage assignment, your original lender or servicer transfers your mortgage account to another loan servicer. When this occurs, the original mortgagee or lender's interests go to the next lender. Even if your mortgage gets transferred or assigned, your mortgage's terms should remain the same.

The most common example of an Assignment of Mortgage is when a mortgage lender transfers/sells the mortgage to another lender. This can be done more than once until the balance is paid. The lender does not have to inform the borrower that the mortgage is being assigned to another party.

Doing so allows your mortgage provider to ensure future financial liquidity so that it can keep extending home loans to other borrowers. Under such a scenario, your original loan holder basically ?flips? the mortgage and assigns its security rights in a home to the new owner of the note instead.

The assignment transfers all of the interest the original lender had under the mortgage to the new bank. By tracking loan transfers electronically, MERS eliminates the long-standing practice that the lender must record an assignment with the county recorder every time the loan is sold from one bank to another.