Mortgage satisfaction | The bank rate
What is mortgage satisfaction?
A mortgage satisfaction is a document that serves as proof that you have fully paid off your mortgage, releasing the lien associated with the loan of your property and transferring title to you. This document generally includes:
- Borrower and Lender Contact Information
- Loan and Ownership Information
Who prepares the mortgage satisfaction?
When you pay off your mortgage, it is your lender’s responsibility to prepare mortgage satisfaction, have the document signed by the parties involved, and have it notarized. The lender is also responsible for filing the documentation with the appropriate records office.
“The [lender/servicer] manages it completely, ”says Scott Sheldon, branch manager at New American Funding in Santa Rosa, California. “I just paid mine and received a ‘paid’ copy of my bill. “
If your loan was sold to a mender after it was issued – and many mortgages are – your mender, not the lender who funded your loan, is responsible for preparing the paperwork.
Depending on your lender, you may have to pay a nominal fee for the mortgage satisfaction processing.
How Long Does It Take To Get A Mortgage Satisfaction?
Generally, it takes 30 days to receive a mortgage satisfaction, but this may depend on the laws in your state. In Florida, for example, lenders have 60 days from the time the borrower pays off the mortgage to prepare and save the documentation.
For Sheldon’s own mortgage, the process took about three weeks.
Satisfaction of the mortgage with respect to the deed of retrocession
A mortgage satisfaction and a deed of retrocession indicate that the loan has been fully paid and the lien on the property has been released. A deed of on-lending, however, is generally used in states where a deed of trust is also used.
What if the satisfaction of the mortgage is not recorded?
If mortgage satisfaction is not recorded, the state could fine the lender. For this reason, lenders go to great lengths to ensure that they complete the process on time.
If for some reason you have not received mortgage satisfaction, contact your lender or service agent. If your lender has gone out of business, you can try to get a lien release through the Federal Deposit Insurance Corporation. Be prepared to hand over:
- A copy of your note or trust deed
- Title search results
- Proof that you have paid your loan in full