What Is a Release of Mortgage Document?
Understand the crucial document that legally clears your property's title after paying off your mortgage, securing your full ownership.
A mortgage represents a significant financial commitment, with the lender holding a lien on the property as collateral. Once the mortgage debt is fully satisfied, this lien must be officially removed from the property’s public record to ensure undisputed ownership.
Understanding the Release of Mortgage Document
A Release of Mortgage Document, also called a Satisfaction of Mortgage or Deed of Reconveyance, is a legal instrument issued by the lender. Its purpose is to formally acknowledge full repayment of the mortgage debt and remove the lien from the property’s title. This document proves the lender no longer has a claim to the property.
The document contains specific information for identification, including names of the borrower and lender, a legal description of the property, and original mortgage recording information. It prominently features a statement confirming the debt is satisfied and the lien released. This record establishes transparent property ownership, showing the property is free from outstanding debts.
Receiving the Release Document
After a mortgage loan is fully paid off, the lender or mortgage servicer is responsible for preparing the Release of Mortgage Document. This process begins once the final payment clears and the mortgage balance reaches zero. The lender is legally obligated to generate this document.
Lenders are required to send this document within 30 to 90 days after payoff, though the exact timeframe can vary by local regulations. Homeowners should expect to receive either the original document or a certified copy from the lender. This often includes a “mortgage satisfaction letter.”
Recording the Release Document
Upon receiving the Release of Mortgage Document, the homeowner must record it with the appropriate local government office. This office is typically the county recorder’s office, county clerk’s office, or register of deeds. Recording the document provides public notice that the mortgage lien has been officially removed from the property’s title. Without this recording, the lien could still appear as an active claim, complicating future transactions like selling or refinancing.
To record the document, the homeowner needs to take or mail the original, signed, and notarized Release of Mortgage to the recorder’s office. A recording fee is usually required, which varies by county. After successful recording, the homeowner may receive a recorded copy back or verify its recording through online public records. This step ensures clear and unencumbered title to their property, fully reflected in public records.