Sample Mortgage Contract

Each state where mortgages are used has established its own laws regarding their use and what legal language needs to be included within the mortgage document. The mortgage is usually recorded in the county where the property is located. The actual mortgage form varies for each locale. The mortgage document establishes the security for the loan, in other words it creates the collateral for the loan by pledging the real estate. The lender places a lien on the property, granting rights to repossess it should the borrower not make required loan payments.

Today's mortgage document usually varies from fifteen to twenty pages.

A shorter, more generic mortgage document is offered here and gives you a basic understanding of what language is usually included in the document:

This Mortgage is made by _______________, an individual with an address of ______________________________, (“Mortgagor”), to ________________ ________________, an individual with an address of ________________________________ ________________, (“Mortgagee”).

Mortgagor is indebted to Mortgagee in the principal sum of $________________ _______, with interest at the rate of _______ percent per year, payable as provided in a certain dated ______________. The terms and conditions of such promissory note are incorporated herein by reference.

Therefore, to secure the payment of the above indebtedness, Mortgagor hereby mortgages and conveys to Mortgagee all the following real estate:

(legal description of property)

Subject to all valid easements, rights of way, covenants, conditions, reservations, and restrictions of record, if any.

To have and to hold the same, together with all the buildings, improvements, and appurtenances belonging thereto, if any, to the Mortgagee and Mortgagee's heirs, successors, and assigns forever.

Mortgagor covenants with Mortgagee that:

  • Mortgagor will promptly pay the above indebtedness when due;

  • Mortgagor will promptly pay and discharge all real estate taxes, assessments, and charges assessed upon the property when due, and in default thereof, Mortgagee may pay the same and such amounts will also be secured by this Mortgage;

  • Mortgagor will keep the buildings and improvements on the property, if any, insured against loss by fire and other casualty in the name of Mortgagee in such an amount and with such company as shall be acceptable to Mortgagee, and in default thereof, Mortgagee may effect such insurance and such amounts will also be secured by this Mortgage;

  • Mortgagor will neither make nor permit any waste upon the property and will maintain the property and any improvements in good repair;

  • Mortgagor will not remove or demolish any building or improvement on the property without the consent of Mortgagee;

  • If Mortgagor shall sell, convey, or transfer, voluntarily or involuntarily, all or any interest in the above property, Mortgagee may, at its option, declare the entire indebtedness secured hereby to be immediately due and payable;

  • Mortgagor hereby assigns to Mortgagee all rents and profits of the property, if any, as additional security for the above indebtedness;

  • Mortgagee shall be entitled to the appointment of a receiver in any action to foreclose this Mortgage; and

  • Mortgagor will warrant and defend the title to the property against the lawful claims and demands of all persons.

If any payment required under such promissory note is not paid when due, or if default shall be made by Mortgagor in the performance of any agreement, term, or condition of this Mortgage or such promissory note, Mortgagee may, at its option, declare the entire indebtedness secured hereby to be immediately due and payable and may enforce payment of such indebtedness by foreclosure of this Mortgage or otherwise, in the manner provided by law. Mortgagor shall pay all costs and expenses, including reasonable attorney's fees, incurred by Mortgagee by reason of Mortgagor's default.

Provided, however, that if Mortgagor shall pay the above indebtedness and faithfully perform all agreements, terms, and conditions of this Mortgage and such promissory note, then this Mortgage shall be null and void.

The rights and remedies of Mortgagee herein are cumulative, not exclusive, and are in addition to all other rights and remedies available to Mortgagee at law or equity. Failure of Mortgagee to exercise any right or remedy at any time shall not be a waiver of the right to exercise any right or remedy on any future occasion.

If any provision of this Mortgage shall be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

This Mortgage is made upon the STATUTORY CONDITION, for any breach of which Mortgagee will have the STATUTORY POWER OF SALE, if existing under applicable law.

IN WITNESS WHEREOF, this Mortgage is executed under seal on the __________ day of____________________, 19_____.

Signed, sealed, and delivered

in the presence of:

________________________________________ (Seal)

(Signature of witness)

STATE OF ____________________

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  2. Buying Foreclosures
  3. Types of Legal Commitments
  4. Sample Mortgage Contract
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