Assignment Of Mortgage
Assignment of Mortgage
This Assignment dated __________________ between ______________ (“Assignor”), of __________________________ and ____________________ (“Assignee”), of _______________________________.
Whereas:
(A) By a mortgage dated _____________ (“Mortgage”), and recorded on _________ as Registration/Recordal Number ________, the property described as _______________, (“Property”) was mortgaged in favor of the Assignor to secure payment of the principal sum of $___________________with interest as therein set out upon the terms therein mentioned;
(B) There is now owing upon the Mortgage for principal $________________ together with interest thereon from the date hereof,
(C) Assignor has agreed to assign the Mortgage to Assignee;
In consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:
1. Assignor hereby assigns, transfers and sets over to Assignee Assignor’s interest as mortgagee in Mortgage and also the sum of Amount of Indebtedness now owing from mortgage borrower to Assignor $____________ now owing as aforesaid, together with all monies that may hereafter become due or owing in respect of Mortgage, the charge upon the Property and the full benefit of all powers and of all covenants contained in Mortgage, and also the full power and authority to use the name or names of Assignor for enforcing the performance of the covenants and other matters and things contained in Mortgage.
2. Assignor makes this assignment to Assignee, to have and to hold the said Mortgage and all monies arising in respect of the same and to accrue thereon, to the use of Assignee absolutely forever, but subject to the terms contained in such Mortgage.
3. Assignor hereby covenants with Assignee that Mortgage is a good and valid security and the sum of Amount of Indebtedness Now Owing from Mortgage Borrower to Assignor $_______________ is now owing and unpaid and that Assignor has not done or permitted any act, matter or thing whereby Mortgage has been released or discharged either partly or in its entirety.
4. Assignee may collect, realize, sell or otherwise deal with the assigned accounts or any part thereof in such manner, upon such terms and conditions and at such time or times as may seem to it advisable and without notice to Assignor (except as otherwise required by any applicable law), and may charge on its own behalf and pay to others reasonable sums for expenses incurred and for services rendered (expressly including legal advice and services) in or in connection with collecting, realizing, selling or obtaining payment of the Assigned Accounts and may add the amount of such sums to the indebtedness of Assignor.
5. Assignor shall from time to time forthwith on Assignee’s request do, make and execute all such further assignments, documents, acts, matters and things as may be required by Assignee of or with respect to Mortgage as may be required to give effect to these presents, including, but not limited to obtaining waivers and subordinations of interests in Mortgage from any persons having a prior claim or interest thereto. Assignor hereby constitutes and appoints Assignee the true and lawful attorney of Assignor irrevocable with full power or substitution to do, make and execute all such statements, assignments, documents, acts, matters or things with the right to use the name of Assignor whenever and wherever it may be deemed necessary or expedient.
6. The provisions hereof shall inure to the benefit of the successors and assigns of Assignee and shall be binding upon the respective heirs, executors, administrators, successors and assigns of Assignor.
7. This is the entirety of the agreement. Any changes must be made in writing and signed by both parties. Any disputes must be brought in the state of ______________.
Date:
____________ _______________
Assignor Assignee
____________ _______________
Witness Witness
Assignment of Mortgage
Review ListThis review list is provided to inform you about this document in question and assist you in its preparation. This is a standard assignment of mortgage. It is a complicated document and should be reviewed especially carefully prior to executing.
1. Make multiple copies. Give one to each signatory. Keep one with the transaction file.
Frequently Asked Questions
What is an assignment of mortgage?
An assignment of mortgage is a legal document by which the current mortgagee transfers its interest in a mortgage to another party. In the provided form, the Assignor assigns, transfers, and sets over to the Assignee the Assignor's interest as mortgagee in the Mortgage, along with the outstanding indebtedness. This effectively substitutes the Assignee as the holder of the mortgage rights.
What information is required in an assignment of mortgage?
The assignment of mortgage form requires the date of the assignment, the names and addresses of the Assignor and Assignee, and details of the original mortgage such as its date, recording information, and registration number. It also requires a description of the property, the principal sum secured, and the current amount owing for principal and interest. All these details are necessary to properly identify the mortgage being assigned.
Who are the parties involved in an assignment of mortgage?
The parties are the Assignor, who is the current mortgagee transferring its interest, and the Assignee, who is the party receiving that interest. The form specifies that the Assignor is of a certain location and the Assignee is of another location, indicating their respective addresses. Both parties agree to the assignment under the terms set out in the document.
What consideration is required for an assignment of mortgage?
The assignment of mortgage states that it is made in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged. This means that some form of value is exchanged, but the exact amount is not specified in the form. The acknowledgment of receipt and sufficiency is a standard legal clause to confirm that consideration has been given.
What happens to the mortgage debt when it is assigned?
When a mortgage is assigned, the Assignor assigns to the Assignee the sum of the Amount of Indebtedness now owing from the mortgage borrower to the Assignor, together with all monies that may hereafter become owing. This means the Assignee acquires the right to receive the outstanding principal and any future payments under the mortgage. The assignment transfers both the mortgage interest and the debt it secures.
How is an assignment of mortgage recorded?
The assignment of mortgage form itself does not specify the recording process, but it references the original mortgage's recording information, such as the date recorded and the Registration/Recordal Number. Typically, an assignment would be recorded in the same land records office where the original mortgage was recorded to provide public notice. The form includes blanks for the assignment date and the parties' details, which would be completed before recording.
What is the effect of an assignment of mortgage on the borrower?
The assignment of mortgage transfers the mortgagee's interest to the Assignee, meaning the borrower will now make payments to the Assignee instead of the original mortgagee. The borrower's obligations under the mortgage remain unchanged, as the assignment does not alter the terms of the original mortgage. The Assignee steps into the shoes of the Assignor as the new mortgagee.
Is an assignment of mortgage the same as a mortgage?
No, an assignment of mortgage is a separate document that transfers an existing mortgage from one mortgagee to another. The original mortgage is the security instrument that creates the lien on the property, while the assignment transfers the rights under that mortgage. The assignment form references the original mortgage and does not create a new mortgage.
What details about the original mortgage are needed for an assignment?
The assignment form requires the date of the original mortgage, the date it was recorded, and its Registration/Recordal Number. It also requires a description of the property and the principal sum secured by the mortgage. These details ensure the correct mortgage is being assigned and provide a clear chain of title.
Can an assignment of mortgage include future amounts owing?
Yes, the assignment of mortgage form explicitly assigns not only the current Amount of Indebtedness owing but also all monies that may hereafter become owing under the mortgage. This means the Assignee is entitled to receive any future payments or advances that fall due. The assignment thus covers both present and future obligations secured by the mortgage.
