Satisfaction Of Mortgage Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Satisfaction Of Mortgage, written in plain English, along with examples of how it is used.
What is Satisfaction Of Mortgage?
(n) Satisfaction of mortgage is the document acknowledging the settlement of dues in a mortgage loan thereby clearing the title of the property which was mortgaged to him. This document is required to be recorded with the county recorder or recorder of deeds to clear the title of the property.
History and Meaning of Satisfaction Of Mortgage
Satisfaction of mortgage is a legal term that describes the process of settling a mortgage loan and releasing the property from the mortgage lien. A mortgage is a loan secured by a property, and the lender has the right to foreclose on the property if the borrower defaults on the loan. When the mortgage loan is fully paid off, the lender issues a satisfaction of mortgage document, which is recorded with the county recorder or the recorder of deeds to inform the public that the property is free and clear of the mortgage lien.
Examples of Satisfaction Of Mortgage
John took out a mortgage to buy a house and after 30 years of payments, the loan was finally paid off. The lender issued a satisfaction of mortgage document to release the property from the mortgage lien.
Mary inherited a property from her parents, but there was still a mortgage on the property. She sold the property and used the proceeds to pay off the loan. The lender issued a satisfaction of mortgage document, which was recorded with the county recorder to clear the title of the property.
Tom refinanced his mortgage to get a lower interest rate. After he paid off the original mortgage loan, the lender issued a satisfaction of mortgage document, which was recorded with the county recorder.
Legal Terms Similar to Satisfaction Of Mortgage
Mortgage lien - A legal claim on a property given to a lender as security for a mortgage loan.
Release of lien - A document that releases a lien on a property, including a mortgage lien, once the debt is paid off.
Deed of reconveyance - A legal document that transfers the legal title to a property from the trustee to the borrower once a mortgage loan is paid off.