From a mortgage lender’s perspective, the essence of a secured mortgage loan transaction is the assurance that the lender will be repaid the principal amount of the loan and will realize all interest and other costs and expenses to which the lender is entitled under the loan documents even if the mortgage borrower is unable to, or otherwise fails to, satisfy its obligations. Such assurance is achieved through the lender’s ability to foreclose on the collateral mortgaged and/or pledged as security for the loan. The value of the mortgage borrower’s collateral, therefore, is of primary concern to a mortgage lender.
In order to ensure that the borrower’s collateral will be sufficient to secure the loan, the lender, among other things, will seek to acquire a security interest in any and all of a borrower’s assets. One way that lenders attempt to ensure their collateral encompasses all of the borrower’s property is to include in the granting clause of the mortgage all real property thereafter acquired by the borrower under the prospect that the lender’s lien will spread to cover any real property a borrower may subsequently purchase.
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