Paying Off Your Mortgage: What You Need to Know

– When a borrower pays off a mortgage or deed of trust, the lender must record a notice that it no longer holds a security interest in the property.
– The laws governing these notifications vary from state to state and must be consulted individually for details.
– The notice must be in written form according to state law and set forth the borrower’s satisfaction of the debt.
– If a lender fails to record the notice, they may be liable for monetary damages.
– Borrowers should follow up to ensure they receive a copy of the satisfaction documentation and keep it in a safe place.

https://www.knott-law.com/mortgages-satisfaction/