What’s the difference between the mortgage, deed, and note in Alabama?


“What’s the difference between the mortgage, deed, and note in Alabama?”

What's the difference between the mortgage, deed, and note in Alabama?These are important terms to know, especially when we’re facing foreclosure in Alabama.

The note is the debt that you owe.

That’s the money you’ve borrowed, and need to pay back.

You may be wondering, “Well, is this just an unsecured debt? Like a credit card payment?” 

No, it’s a secured loan.

The debt is secured by the mortgage.

The mortgage ties the debt to the dirt. 

It’s how the mortgage company knows that you will pay them back.

If you don’t, the mortgage allows them to take your property from you.

Let’s talk about the deed for a moment.

The deed is like ownership. 

So if I were to sell my house to you, the deed (usually called a warranty deed) would say that I’m selling my property to you.

“So, what is a foreclosure deed?”

A foreclosure deed is where the mortgage company forecloses on me, and they transfer the property from my name to their name, or in some cases the ownership changes to an investor or someone who is interested in your property.

Even if I don’t want them to foreclose on me, I gave them permission to do so in the mortgage.

Essentially, if I miss my payments, after a certain amount of time they can sign my name on the foreclosure deed.

The foreclosure deed explains what happened at the foreclosure sale.

Hope this is helpful to you!

If you have any questions, feel free to get in touch with us.

We’d be glad to help you figure out the best course of action for your unique situation.

We serve consumers all over the state of Alabama.

You can reach us by phone at 1-205-879-2447, or you can fill out a contact form and we will get in touch with you quickly.

We look forward to chatting with you!

Thanks for reading, and have a great day.

-John G. Watts

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