mortgage bill of sale

Definition

Document signed by a borrower (mortgagor) to give a lender (mortgagee) the right to claim and sell the pledged (mortgaged) property if a debt is not paid according to the terms of loan agreement. Since the mortgagor usually retains the possession of the property and has the right to redeem it on repayment of the debt, it is not an absolute but a conditional bill of sale.

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