What is a participation Mortgage?


A particiation mortgage relates to two different types of mortgages.

1- A mortgage in which two or more lenders participate in making the loan.  The participation agreement between the lenders may provide that each participating lender owns a pro rate share of the mortgage payment of principal and interest as it is made.  Another option would be for one lender to contribute a substantial portion of the loan and another lender to give a small amount of the loan.  In this case, the lender who invested more would receive first priortiy in the security pledge in the mortgage.

2- A mortgage in which the lender participates in the profits generated by a commercial property used to secure payment of the debt in the mortgage loan.

Michele Cadogan

Fillmore Real Estate

Licensed Real Estate Associate Broker


About Cadogan's Brooklyn Real Estate Blog

Michele Cadogan is a Brooklyn NY real estate professional . She makes the process of buying, renting and selling real estate in Brooklyn a good experience. A long time Flatbush Brooklyn resident, she has a tremendous appreciation of the borough, its great history and its diverse communities. With a degree in Political Science and Economics she brings a balance perspective to the your real estate experience. Truly a professional in a people oriented business. When looking for a real estate agent in Brooklyn to help you buy or sell a home in Brooklyn , call Michele. Michele Cadogan Fillmore Real Estate Licensed Real Estate Associate Broker 917-861-9166 Your Brooklyn Real Estate Professional
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