ADVANTAGES

It is important to note that the Mortgage is not assigned to the Collateral Lender (it’s not an Assignment of Mortgage). Rather, the promissory note is what is assigned to the Collateral Lender (and should be physically delivered/possessed by them). This means that the loan is basically split in two, with the interest in the real property (Mortgage) remaining with the Original Lender and the personal property interest (Promissory Note) transferred to the Collateral Lender. Despite this (and as detailed below), satisfying and foreclosing the mortgage should be handled by both parties – as they both have interests in the underlying loan.

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