Definition of Co-mortgagor:
A co-signer on a mortgage individually or jointly obligated to make repayments on a loan for the entire amount. The individual will share ownership of the property under the loan with one or more additional borrowers.
A co-mortgagor shares in the repayment obligation and ownership of a property.
A co-mortgagor is a participant in a loan who shares in the liability for full repayment of a loan. They are also a co-owner of the property following the closing of the loan. A co-mortgagor can be a relative or business partner of the primary borrower, and has the same rights and responsibilities as the other party. Generally, an individual applicant brings in a co-mortgagor in order to improve the application or allow them to apply for a larger loan. A lender may be happy to involve a co-mortgagor in the loan transaction, as the second borrower lowers default risk to the lender. The co-mortgagor also bears responsibility for repayment if the original applicant is unable to make payments. In exchange, the co-mortgagor enjoys partial ownership of the property and has limited resale rights.
The borrower in a mortgage, typically a homeowner.
Synonyms of Co-mortgagor
How to use Co-mortgagor in a sentence?
- An attornment clause in a mortgage whereby the mortgagor attorns tenant at will to the mortgagee is not a true contract and so is not ‘an agreement’ for present purposes.
Meaning of Co-mortgagor & Co-mortgagor Definition