What does the term "satisfaction of mortgage" refer to?

What does the term "satisfaction of mortgage" refer to?

• A. The amount paid to settle a debt
• B. A document confirming mortgage payoff
• C. A type of loan modification
• D. A release of property lien

Answer: (B)

The term "satisfaction of mortgage" specifically refers to a document that confirms the payoff of a mortgage loan. When a borrower pays off their mortgage in full, the lender prepares this document to certify that the debt has been satisfied and that the lender no longer holds a claim against the property. This document is crucial because it releases the borrower from the mortgage obligation and is typically filed with the county clerk or recorder's office, officially removing the lien on the property. The importance of this document lies in its role in the real estate transaction process; it is essential for clear title transfer in future sales and for the borrower to obtain full ownership of the property without any claims from the mortgage lender.

The term "satisfaction of mortgage" specifically refers to a document that confirms the payoff of a mortgage loan. When a borrower pays off their mortgage in full, the lender prepares this document to certify that the debt has been satisfied and that the lender no longer holds a claim against the property. This document is crucial because it releases the borrower from the mortgage obligation and is typically filed with the county clerk or recorder's office, officially removing the lien on the property.

The importance of this document lies in its role in the real estate transaction process; it is essential for clear title transfer in future sales and for the borrower to obtain full ownership of the property without any claims from the mortgage lender.