Allonge
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A phrase used by an endorser (a signer other than the original maker) of a negotiable instrument (for example, a check or promissory note) to mean that if payment of the instrument is refused, the endorser will not be responsible.
So, when a loan is sold both the Promissory Note and Mortgage need to be conveyed to the new Note owner.The endorsement on the Promissory Note is called an Allonge. The endorsement on a Mortgage is called an Assignment of Mortgage.
Endorsements. When an investor purchases a loan, the previous owner will sign or endorse the note, formally indicating that the note is being transferred to a new owner. This process is called endorsement. Just as with a check, one party can transfer ownership of a note by signing it over to another party.
Endorsement of a promissory noteEndorsement consists of a mandatory signature and (optional) words qualifying that act. The payee, who is then using the note as a financial instrument, becomes the endorser and the party receiving the note is the endorsee, the new holder of the promissory note.
An allonge is a sheet of paper that is attached to a negotiable instrument, such as a bill of exchange. Its purpose is to provide space for additional endorsements when there is no longer sufficient space on the original instrument. The word allonge derives from the French word allonger, which means to lengthen."
Additional paper firmly attached to Commercial Paper, such as a promissory note, to provide room to write endorsements. An allonge is necessary when there is insufficient space on the document itself for the endorsements.
The endorsement on the Promissory Note is called an Allonge. The endorsement on a Mortgage is called an Assignment of Mortgage.The Assignment must be signed and notarized. The last document also transfers ownership, but of the note itself.
A promissory note is often referred to as a mortgage note and is the document generated and signed at closing. A mortgage, or mortgage loan, is a loan that allows a borrower to finance a home. You may also hear a mortgage called a home loan. These terms all mean the same thing.