Loan mechanics
Satisfaction of mortgage
The recorded document showing a mortgage has been paid in full
The lender issues it once the note is discharged, and it is recorded to clear the lien from the title. Until it is recorded the mortgage still shows against the property, whatever receipts the borrower is holding.
How the exam asks about it
The defeasance clause is what obliges the lender to release; the satisfaction is the instrument that does it. Under a deed of trust the equivalent is a deed of reconveyance.
Quick check: Satisfaction of mortgage
One question. Pick an answer to see the explanation.
Which term is being defined: “The recorded document showing a mortgage has been paid in full”?
Related terms
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