Satisfaction of mortgage
| Satisfaction of mortgage |
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| See also |
Satisfaction of mortgage confirms paying out the mortgage. The satisfaction of mortgage is formal document that allows transfer of collateral title right. Lending institution, when the mortgage was paid out, prepares the document which is then signed by all the parts of the mortgage.
It is important that borrower monitors the process of creating satisfaction of mortgage document. The document is very important for the borrower. Therefore, any errors in it will be a problem in future, for example when former borrower would like to sell the property.
Satisfaction of mortgage confirms paying out the mortgage. The satisfaction of mortgage is formal document that allows transfer of collateral title right. Lending institution, when the mortgage was paid out, prepares the document which is then signed by all the parts of the mortgage. It is important that borrower monitors the process of creating satisfaction of mortgage document. The document is very important for the borrower. Therefore, any errors in it will be a problem in future, for example when former borrower would like to sell the property. Satisfaction of mortgage is a document which confirm the terms of the mortgage agreement. The contract will be fulfilled when a borrower will paid mortgage loan to the lender[1].
The parties in a Satisfaction of Mortgage
In a Satisfaction of Mortgage take part 2 parties (the same like in a Mortgage agreement): the mortgagor and the mortgagee The mortgagor is a person or the entity who borrowed the money to purchase the property from a lender to pay for a home and plegned this house as security. The mortgagee is a person or entity, corporation who lent the money to the mortgagor to pay for their house (for example: the bank)[2].
Mortgage
A mortgage is as kind of debt instrument which secure a real estate property. It is means that the borrower is obligated to paid in correct time the amount which was borrower from lender. This type of credit - mortgages are used by companies or by individuals people to make a large purchase of real estate property. They have not enough money and they take a loan without paying the entire value in advance. The borrowers must repays the loan with including interest. The interest are a profit for the lender (for example: bank)[3].
Satisfaction Mortgage - process of preparing a document
Satisfaction mortgage - this document should be prepared by a lending institution - by a legal adviser. The document must contain the names of all parties related to the mortgage, details of the loan, payment terms and legal provisions. The document must be signed by all mortgage parties. The complete document should be filed in accordance with the law in the appropriate office according to the procedures established by the state. Upon completion of the document submission processes, the borrower should receive confirmation from the office - as confirmation that the loan has been repaid[4].
How we can get a Satisfaction of Mortgage?
After receiving the repayment of the mortgage from the borrower, the mortgage satisfaction is issued by the lender. This document is signed by the mortgagee (in some cases in the presence of witnesses). It must also be certified by a notary public. If document has been notarized, is should be delivered to the mortgagor. It is a confirmation that the mortgage isn't a lien on the property. A Notary Public is an official state-appointed. This person is authorized to authenticate legal documents (for example statements, declarations, deeds or mortgages)[5].
Similar Documents[6].
- Deed of Reconveyance: This document in on purpose transfers the title of real property from trustee to a trustor. This happens after the trust paid the real estate loan.
- Deed of Trust: This document in on purpose transfer the title of real property to a trustee as security
- Mortgage Agreement: This agreement is used to security for a loan which was taken out for the purchase of real estate.
- Promissory Note: This document is a kind of enforceable promise, where the borrower agrees to pay off the loan from the lender
- Real Estate Purchase Agreement: This document is a real estate purchase and sale agreement and which contains the terms of the contract
Mortgage insurance
During a taking out a mortgage it is necessary to take out insurance. Mortgage insurance is a kind of insurance policy. This document protects a mortgage lender or holder of insurance, when borrower defaults on payments or dies. It can also protect when borrower is not to able to meet the contractual obligations of the mortgage[7].
References
- Courchane, M. J., Surette, B. J., & Zorn, P. M. (2004). Subprime borrowers: Mortgage transitions and outcomes. The Journal of Real Estate Finance and Economics, 29(4), 365-392.
- Schmudde, D.A. (2004). A Practical Guide to Mortgages and Liens, ALI-ABA.
- Cummins, R.R. (1997). Basics of Legal Document Preparation, Cengage Learning.
- Dale, P. Jones, H. (2015). Mortgage Smarts, FriesenPress.
- Reilly, J.W. (2000). The Language of Real Estate, Dearborn Real Estate.
Footnotes
Author: Patrycja Garbacik
