A mortgagor can only sell or donate a mortgaged property if they obtain the Mortgagee's approval. The purchaser must also agree to take over all obligations of the original mortgagor under the mortgage contract. The law ensures that the bank's inter…
A mortgagor can only sell or donate a mortgaged property if they obtain the Mortgagee's approval. The purchaser must also agree to take over all obligations of the original mortgagor under the mortgage contract. The law ensures that the bank's interest is protected by allowing them to stipulate that the original owner and the new purchaser are jointly liable for the debt. This ensures that real estate transactions do not extinguish the security held by the financing institution.
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