Last Updated July 25, 2023
Satisfaction of Mortgage
What is a Satisfaction of Mortgage?
A Satisfaction of Mortgage, sometimes called a release of mortgage,
is a document that acknowledges that the terms of a Mortgage
Agreement have been satisfied, meaning that a borrower has repaid
their mortgage loan to the lender.
Consequently, the lien on the borrower's property (placed for
security for the loan) will be lifted once the Satisfaction of
Mortgage document is filed.
Who are the parties in a Satisfaction of Mortgage?
The parties mentioned in a Satisfaction of Mortgage are the same as
the parties in a ProductLink code="BMORT" text="Mortgage
Agreement".
The mortgagor is the person who borrowed money from
a lender to pay for a home and pledged that home as security for the
loan.
The mortgagee is the person or corporation that
lent the money to the mortgagor to pay for their home.
How do you get a Satisfaction of Mortgage?
A Satisfaction of Mortgage is issued by the lender after they have
received the final mortgage payment from the borrower. It's signed
by the mortgagee (in the presence of a witness in some states and
counties) and then notarized by a registered notary public.
Once the document has been notarized, it can be delivered to the
mortgagor, and they file it with the County Clerk's Office
(sometimes called the County Recorder's Office or Land Registry
Office) to acknowledge that the mortgage is no longer a lien on the
property.
What's the difference between a Satisfaction of Mortgage and a Deed
of Reconveyance?
A Satisfaction of Mortgage and a Deed of Reconveyance are
essentially the same thing. Where a Deed of Reconveyance is used to transfer a property title
from a Trustee to a Trustor once the Trustor has paid what they owed
under a Deed of Trust
agreement, a Satisfaction of Mortgage does the same thing but with a
loan created through a Mortgage Agreement.
Some states, like Idaho and D.C., require the use of a Deed of
Reconveyance, some states require the use of a Satisfaction of
Mortgage, and some states can use either. Be sure to check which
document is appropriate for your state and ensure you are using a
Satisfaction of Mortgage with a Mortgage Agreement or a Deed of
Reconveyance with a Deed of Trust.
Unsure which deed is right for you?
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