Add Formulas and Calculations Legal Massachusetts Satisfaction of Mortgage Forms For Free

In a discharge of mortgage, your home loan (sometimes called an encumbrance) is officially removed from the title of your property. Essentially, your home officially becomes your own — no lender is involved.

It's best to keep the most recent mortgage documents for at least three to seven years, even after the home is sold. If you received a certificate of satisfaction for paying off a mortgage, then this document should be kept as well. These documents may become necessary in the case of an IRS audit or estate settlement.

The general rule is that the satisfaction must be in proper written format and recorded to provide notice of the satisfaction. If the lender fails to record a satisfaction within set time limits, the lender may be responsible for damages set by statute for failure to timely cancel the lien.

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.

The general rule is that the satisfaction must be in proper written format and recorded to provide notice of the satisfaction. If the lender fails to record a satisfaction within set time limits, the lender may be responsible for damages set by statute for failure to timely cancel the lien.

In order to make public notification that you have paid your mortgage off, you need to bring the original Discharge of Mortgage provided by the bank to the Registry of Deeds along with either cash or a check in the amount of $105.00. The Registry will record the Discharge and return it to you immediately.

This release of mortgage is recorded or filed and gives notice to the world that the lien is no more. On the other hand, when you have a trust deed or deed of trust, the lender files a release deed. With a deed of trust, you temporarily give control of the title to your property to the lender for security purposes.

Waiting It Out Additionally, you may need to wait for a period of time after discharge before you apply for a loan. Some government-backed loans don't have waiting periods, but most loans require you to wait one to four years, depending on the type of loan and type of bankruptcy in play.

The mortgage discharge is not only a necessity during real estate transactions but also a crucial step to consider when buying a new property. In the absence of a discharge, the creditor of the former owner still has a lien on the property.