PARTIES TO A MORTGAGE Mortgagor – The property owner who has borrowed money to purchase property and has, in turn, given the lender a mortgage. The Mortgagor is typically the named insured. Mortgagee – The bank or lender whose interest in the property is secured by the mortgage.

FORECLOSURE Judicial Foreclosure Requires filing of lawsuit when mortgage does not contain Power-of-Sale Clause. Non-Judicial Foreclosure Power-of-Sale Clause gives lender the power to sell the property without a lawsuit. MN – 8 week Notice of Sale must be provided. Right-of-Redemption MN – Borrowers have up to one year to redeem by paying the past-due amount.

MORTGAGEE’S DUTIES Notify the insurer of any change in ownership. Notify the insurer of any change in occupancy. Notify the insurer of any substantial change in risk. Pay any premium due on demand if the insured has neglected to pay the premium. Submit a signed, sworn Statement of Loss if requested.

IMPACT OF FORECLOSURE BEFORE LOSS & AFTER LOSS Foreclosure After Loss “Full Credit Bid” vs. Bid For Less Than The Unpaid Mortgage Debt Foreclosure Before Loss Extent of Recovery – Full Amount of Loss Up To Policy Limits