The mortgage or security instrument is a document signed by a borrower and a lender giving the lender the right to the borrower’s house if the borrower does not repay the loan. The mortgage has many clauses. The mortgage contains the same information as the Note and other clauses such as:

• Application of payments

• Fire, flood and other hazard insurance requirements

• Condemnation

• Occupancy, preservation, maintenance and protection of the property

• Fees

• Grounds for acceleration of the debt

• Reinstatement information

• Foreclosure procedures

Generally during a loan closing, the borrower does not take the time to read completely through a mortgage. It is advisable for the borrower to be very familiar with the mortgage prior to closing. Typically the mortgage is a lengthy document to read at a loan closing, but you, the borrower, have every right to take the time to read the mortgage. Asking for a draft copy of the mortgage in advance would be wise. Don’t ever sign a document you have not read or are not familiar with. Ask questions about any provision found in the mortgage if you do not understand the provision. Seek legal counsel when needed.

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