The mortgage note is part of your closing papers and you will receive a copy at closing. If you lose your closing papers or they get destroyed, you can obtain a copy of your mortgage note by searching the county’s records or contacting the registry of deeds.
Does a mortgage secure a promissory note?
The Difference Between a Promissory Note & a Mortgage. The main difference between a promissory note and a mortgage is that a promissory note is the written agreement containing the details of the mortgage loan, whereas a mortgage is a loan that is secured by real property.
When does a promissory note go back to the lender?
The lender holds the promissory note while the loan is being repaid, then the note is marked as paid and returned to the borrower when the loan is satisfied. Promissory notes aren’t the same as mortgages, but the two often go hand in hand when someone is buying a home.
How are promissory notes recorded in land records?
The note includes the: term (number of years). Unlike a mortgage or deed of trust, the promissory note is not recorded in the county land records. The lender holds the promissory note while the loan is outstanding. When the loan is fully paid off, the note will be marked as paid in full and returned to the borrower.
What happens when a mortgage is assigned to Mers?
Once a loan has been assigned to MERS, it can be bought and sold any number of times later without recording assignments. Don’t be surprised if you find out that your mortgage was assigned to MERS at some point.
What happens to a promissory note when it changes hands?
When the loan changes hands, the promissory note is endorsed (signed over) to the new owner of the loan. In some cases, the note is endorsed in blank, which makes it a bearer instrument under Article 3 of the Uniform Commercial Code. This means that any party that possesses the note has the legal authority to enforce it.
