Who typically holds the benefits of a mortgage in Louisiana during the duration of the loan?

In Louisiana, the entity that typically holds the benefits of a mortgage during the duration of the loan is the mortgagee. The mortgagee is the party that lends the money and secures an interest in the property to ensure the loan is repaid. This means they have legal rights over the property until the mortgage is satisfied, which includes the right to foreclose if the borrower defaults on the loan.

While the lender and mortgagee often serve similar roles in common parlance—since they are usually the same entity—it is crucial to understand the distinction in the context of Louisiana law, where the terms are clearly defined. The borrower, on the other hand, holds the title to the property but does not possess the benefits of the mortgage. The seller may also be involved in the transaction, particularly in a real estate sale that includes financing, but once the loan fills the criteria of a mortgage, the benefits revert firmly to the mortgagee until the debt is paid.