What does a mortgage do regarding title?

A mortgage does not convey title, as it primarily serves as a security interest in the property rather than a transfer of ownership rights. When a borrower takes out a mortgage, they retain ownership of the property, while the lender gains a lien against it. This means the lender has the right to claim the property if the borrower defaults on the loan.

The fundamental aspect of a mortgage is that it establishes a legal agreement where the property acts as collateral, ensuring that the lender can recoup their funds in case of default. The borrowing party retains title and continues to have all the rights associated with property ownership. Thus, the correct understanding of a mortgage is that it secures the lender's interest without actually transferring title or ownership of the property from the borrower.