finance

mortgage

A mortgage is a security instrument in which a borrower, the mortgagor, pledges real property to a lender, the mortgagee, as collateral for a loan. The promissory note is the borrower's promise to repay, while the mortgage creates the lien that allows the lender to foreclose if the borrower defaults. The borrower keeps possession while the loan is outstanding. Some states use deeds of trust instead.

Exam tip: The borrower is the mortgagor because the borrower gives the mortgage to the lender. The note is the debt; the mortgage is the security.
Example: A buyer signs a note for $320,000 and a mortgage pledging the new home; if she stops paying, the lender can foreclose.

1. A chronological summary of all recorded documents affecting a property's title, such as deeds, mortgages and liens, is a(n):

Answer & explanation

Answer: D. The abstract summarizes the recorded history; the chain of title lists successive owners; an attorney's opinion of title evaluates it.

Related terms & state variants

deed of trust hypothecation mortgagee mortgagor promissory note

Sources

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Last verified: 2026-10-23