What does a mortgagee clause mean?
A mortgagee clause is a property insurance provision granting special protection for a mortgagee (e.g., financial institution that has an interest in the property) named in the policy that, in effect, sets up a separate contract between the insurer and the mortgagee.
What does defeasance clause mean?
A defeasance clause is a term within a mortgage contract that states the property’s title (a fancy word for “ownership”) will be transferred to the borrower (mortgagor) when they satisfy payment conditions from the lender (mortgagee).
What is an acceleration clause in a loan?
An accelerated clause is a term in a loan agreement that requires the borrower to pay off the loan immediately under certain conditions.
What is the mortgagee clause for US bank?
A mortgagee clause is a provision in an insurance policy (i.e., mortgages) that ensures the unpaid loan amount is satisfied in the event of a loss. This is accomplished by allocating a portion of the insurance proceeds to the lender.
What does mortgagee clause look like?
Typically, the mortgagee clause contains the name and address of the mortgage lender as well as the loan number. Pretty straightforward. You may also see the following letters or words contained in the mortgagee clause: ISAOA & ATIMA. These are the ones that give people trouble.
When a mortgagee is named in a mortgagee clause?
When a mortgagee is named in a mortgagee clause attached to a fire or other direct damage policy, the loss reimbursement will be paid to the mortgagee as their interest may appear; and, the mortgagee’s rights of recovery will not be defeated by any act or neglect of the insured.
What is the difference between lienholder and mortgagee?
A “mortgagee” is the person to whom the mortgage is made, typically a bank or financial institution. A “lien holder” is a person or institution holding a mortgage or having a legal claim in the specific property, or another person holding a security interest.
What is a reconveyance clause?
Whether you get a deed of reconveyance, a full reconveyance or a satisfaction of mortgage document, it means the same thing: your loan has been paid in full and the lender no longer has an interest in your property. With your mortgage or deed of trust paid off, you cannot be foreclosed on by a financial institution.
What is an alienation clause?
An alienation clause, also known as a due-on-sale clause, is a real estate agreement that requires a borrower to pay the remainder of their mortgage loan off immediately during the sale or transfer of a property title and before a new buyer can take ownership.