What is the process of substituting one borrower in a mortgage for another called?

The process of substituting one borrower in a mortgage for another is known as the assignment of mortgage. This involves the original borrower being released from their obligations and a new borrower assuming responsibility for the loan. This ensures that the lender has the proper contractual relationship with the new borrower and can enforce the terms of repayment in case of default.

When a mortgage is assigned, the lender must formally recognize the new borrower, allowing them to take over the debt obligations under the same terms as the original loan. This process is important for maintaining the integrity and enforceability of the mortgage agreement.

Transfer of mortgage typically refers to the ownership transfer of the mortgage itself rather than the substitution of borrowers. Release of mortgage indicates that the lender has satisfied the mortgage claim and releases the borrower from debt, while modification of mortgage involves changing the terms of the existing loan without a change in the parties involved. These distinctions clarify why the assignment of mortgage is the appropriate term for this process.