Mortgagee

/ˌmɔrɡəˈdʒi/ noun

Definition

The lender in a mortgage transaction who provides the loan and holds a security interest in the property. If the borrower defaults, the mortgagee has the right to foreclose on the property.

Etymology

From Old French 'mortgage' (dead pledge) with the suffix '-ee' indicating the recipient. The term 'mortgage' originally meant a 'dead pledge' because the debt died when paid or the land was forfeited.

Kelly Says

The mortgagee is the bank or lender - they're the ones who can take your house if you don't pay! Think of them as holding a 'death grip' on your property until you pay off the loan, which fits the original 'dead pledge' meaning perfectly.

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