What is the role of a security deed in a mortgage?

The role of a security deed in a mortgage is primarily to establish the lender's right to the property. When a borrower takes out a mortgage, the security deed acts as a legal document that pledges the property as collateral for the loan. This means that if the borrower fails to repay the mortgage as agreed, the lender has the right to foreclose on the property to recover the owed amount. In essence, the security deed provides a formal mechanism for the lender to assert their interest in the property, making it clear that the property is not solely owned by the borrower until the debt is paid in full.

In contrast to other options, a security deed does not serve to prove loan origination, track payment history, or eliminate the need for insurance. These functions pertain to different aspects of mortgage finance and property ownership.