Closings glossary

Satisfaction of mortgage

The instrument that releases a paid mortgage from the record. Until it is recorded, the old mortgage still appears as a lien against the property.

What is a satisfaction of mortgage?

Quick Answer

A satisfaction of mortgage is the recorded document confirming a mortgage has been paid in full and releasing the lien from the property. New York lenders are required to record or deliver it within statutory deadlines, and a missing satisfaction from an old loan is a common title defect.

The full definition

The instrument that releases a paid mortgage from the record. Until it is recorded, the old mortgage still appears as a lien against the property.

Where does satisfaction of mortgage come up in a New York City closing?

A Brooklyn owner paid off a 2004 home equity line, but the bank never recorded the satisfaction, so the refinance stalls until a replacement is obtained.

What else should you read before closing?

In the glossary

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