A Discharge of Mortgage is a document that states that a mortgage has been fully paid off. It is the formal release of a mortgage from the borrower to the lender, signed by both parties. Once the mortgage is discharged, the lender no longer has any claim on the property. There are two types of Discharge of Mortgage: a unilateral discharge and a mutual discharge. A unilateral discharge is issued by the lender when the borrower has paid off the mortgage in full. A mutual discharge is issued when both the lender and the borrower agree to the discharge of the mortgage. In both cases, the Discharge of Mortgage serves as proof that the mortgage has been paid in full and provides a release of liability for both parties.
Discharge of Mortgage
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US-RE-DIS-1000
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Description
When your mortgage is paid off, a mortgage discharge should be recorded with the Registry of Deeds to clear your property's title. A discharge is a document (usually one page) issued by the lender, usually with a title such as “Discharge of Mortgage” or “Satisfaction of Mortgage.”
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How to fill out Discharge Of Mortgage?
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FAQ
What is the distinction between a release and a discharge? With a release, your creditor confirms that all the sums due have been paid. The document certifies that the property is mortgage-free. The discharge releases only part of the property or only one of the individuals responsible for the mortgage payments.
Timely discharge of the mortgage updates your lending status (no more financial responsibility towards paying the said lender) so that you can take the next step. The mortgage will need to be discharged before the property settlement can occur in the process of selling your property.
A mortgage discharge happens when you remove a home loan from the title of your property. Usually, when you have a home loan, the lender has the title - or ownership - of your home until the loan is repaid.
Reasons for discharging a mortgage are: When the borrower sells the property. When the mortgage has been paid in full, but the paperwork for legally removing the lender from the title is not completed yet. When the borrower wants to refinance the property with a different lender.
When you pay off your mortgage and meet the terms and conditions of your mortgage contract, the lender doesn't automatically give up the rights to your property. There are steps you need to take. This process is called discharging a mortgage.
What is the distinction between a release and a discharge? With a release, your creditor confirms that all the sums due have been paid. The document certifies that the property is mortgage-free. The discharge releases only part of the property or only one of the individuals responsible for the mortgage payments.
A mortgage discharge fee is a fee charged by the lender when you pay off your mortgage loan. This fee covers the costs of processing and closing out the loan, including any administrative costs associated with it.
A mortgage discharge is when a mortgage securing your home loan is removed from the title of your property once you have repaid your home loan in full. You'll need to complete a mortgage discharge or release form to release the mortgage over the property you have provided as security to your home loan.