Create Legal New Jersey Assignment Mortgage Forms For Free

Mortgages are assigned using a document called an assignment of mortgage. This legally transfers the original lender's interest in the loan to the new company. After doing this, the original lender will no longer receive the payments of principal and interest.

A disadvantage of a mortgage assignment is the consequences of failing to record it. Under most state laws, an entity seeking to institute foreclosure proceedings must record the assignment before it can do so. If a mortgage is not recorded, the judge will dismiss the foreclosure proceeding.

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.

An assignment transfers all the original mortgagee's interest under the mortgage or deed of trust to the new bank. Generally, the mortgage or deed of trust is recorded shortly after the mortgagors sign it, and, if the mortgage is subsequently transferred, each assignment is recorded in the county land records.

If your contract is not recorded, you will not be identified as the legal owner of the property. What can happen if deed are not recorded? In fact, not recording your deed would mean that if you want to sell a property, repay a mortgage, or establish a home equity line reputation, you can't.

This typically happens because once you close on your mortgage loan, your lender will quickly look to sell the mortgage note on to another entity. Doing so allows your mortgage provider to ensure future financial liquidity so that it can keep extending home loans to other borrowers.