• Mortgage Note

Mortgage Note is an obligatory legal document which states that the borrower is liable to repay a loan at the stated interest rate to the lender within the specified time period. The agreement is secured by the mortgage note or a deed of trust or any other security document.  
In simple term, this note acts as a promise to pay the sum of money to the borrower under the specific terms. Though it has nothing to do with the property itself, though it is legal and if the borrower fails to payback the mortgaged amount, then the lender can sue the person with effects of the same note and would seek the remedies for breaching the contract.  

Also, it is obligatory to pay the loan amount, a mortgage note actually states the transfer of interest in the property. Being tied to the underlying debt created by the note, it does not make a promise to pay the debt. In fact, there is no promise to pay anything. Instead, the lender is given the right to foreclose the property when the borrower fails to pay back the loan amount under the terms of the note signed.

The mortgage note is mostly executed according to the formalities required by the laws of the state where the property is located. It is signed by the people who agrees to pay the debt. The note directly goes to the lender as the purpose for the same is to ensure the lender that the borrowed amount will be paid back within the specific time period. The document being attached with the foreclosure rights for the lender is most probably meant to empower lender for the recovery of given amount.

Thus, mortgage note makes it an important document that will require at the time of an end of the loan term or at the time of the closure.