Mortgagor

Full Answer Section

How Mechanics' Liens Benefit:

Mechanics' liens are designed to protect the rights of those who have contributed to the improvement of a property. By filing a lien, a worker or supplier can ensure that they will be paid for their services, even if the property owner fails to pay the general contractor. This provides a valuable legal tool for securing payment for work performed.  

In essence, a mechanics' lien gives these individuals a claim on the property itself as security for payment.

If the property owner fails to pay the debt, the lienholder may have the right to foreclose on the property and sell it to satisfy the debt.

Sample Answer

Mortgagor and Mortgagee

• Mortgagor: This is the person or entity that borrows money to purchase a property. They use the property as collateral for the loan.  
• Mortgagee: This is the lender, such as a bank or credit union, that provides the loan to the mortgagor.  

Mechanics' Liens

A mechanics' lien is a legal claim placed on real property by someone who has provided labor or materials to improve that property. This is often used by contractors, subcontractors, suppliers, and laborers who have not been paid for their work