Use our satisfaction of mortgage to prove you’ve paid off your loan in full, ensuring a clear title.
Updated July 2, 2024
Written by Ioana Gagiuc | Reviewed by Brooke Davis
A mortgage lien release, also referred to as a “satisfaction of mortgage,” is a post-closing document that notes that the borrower has fully paid off the mortgage, freeing the lien on the property. The form can get the title of the property released, showing that the borrower is the sole owner of the property.
Typically, this document is provided by the bank or lender that issued the initial loan and will be provided to the Land Records Office of the county in which the property is located.
Typically, a mortgage gets satisfied in two ways:
The satisfaction of mortgage document will contain:
Both the borrower and the lender will need to sign the document. Then, it will need to be filed in the relevant county. Typically, the lending institution will submit the release of mortgage document to the relevant office in the county where the property is located. That may be the County Recorder, the Register of Deeds, or another relevant office within the county.
If your loan has been sold to a third party, the new owner of the loan will complete the document.
There are two key parties involved in the process:
Satisfying a loan occurs when the terms of the loan have been met: typically, the borrower has paid back all funds issued by the lender at the time the loan was issued.
A satisfaction of mortgage is used in various circumstances, to officially acknowledge the debt has been paid in full:
Suppose that you took out a standard 30-year loan when you purchased your home. However, you know that paying off your home early can cut down on interest costs and can make a significant difference during your retirement years. As a result, after 20 years, you have paid off your home.
You will contact your lender for the document that will confirm that the home is paid off, that you own it entirely, and that you do not have to worry about further payments. The form will also make it easier if you plan to borrow money against your home in the future.
A lien release without the satisfaction of mortgage may occur when a property is sold in a short sale or when you had a loan at a failed bank.
The table below provides an overview of the states that use satisfaction of mortgage forms, detailing requirements for releasing property liens once loans are fully repaid, along with penalties for non-compliance.
| State | Recording Satisfaction | Penalty |
|---|---|---|
| Alabama | The mortgage is satisfied, and the title passes, once all debts and obligations are cleared, and a written request is served and acknowledged by the mortgagee (§ 35-10-26). | If the mortgagee fails to fulfill the satisfaction request within 30 days, they forfeit $200 to the requester unless there's a pending action contesting the payment (§ 35-10-30). |
| Arizona | Upon satisfaction of a mortgage or deed of trust, the mortgagee or must acknowledge this by delivering or recording a release that includes the docket and page number or recording number (§ 33-707). | Failing to record within 30 days of receiving full satisfaction makes the person liable for actual damages; if they fail to do so within 30 days of a certified mail request, they owe $1,000 plus any actual damages (§ 33-712). |
| Arkansas | Upon full satisfaction of a mortgage, the mortgagee must acknowledge the satisfaction in the public records, releasing the mortgage and revesting the property title to the mortgagor. | If a person receiving satisfaction fails to acknowledge it within 60 days of being requested, they must forfeit a sum up to the mortgage amount, recoverable through civil action (§ 18-40-104). |
| Connecticut | Mortgages can be released through a written instrument executed like a land deed, transferring legal title upon discharge or satisfaction of the obligation (§ 49-9). | Failure to promptly deliver a release upon mortgage satisfaction within 60 days of a written request may lead to liability for damages, up to $5,000 per week of delay or the actual incurred loss (§ 49-8). |
| Delaware | Upon satisfaction or performance of a debt secured by a mortgage, the holder of the title must execute and acknowledge a proper reconveyance of the mortgaged premises. | Failure to promptly record the satisfaction of a mortgage within 60 days of satisfaction or performance can result in fines up to $1,000 per instance, plus associated costs (tit. 25 § 2111). |
| Florida | A mortgagee must provide an estoppel letter detailing the unpaid balance of a mortgage within 10 days, and within 60 days of full payment, execute and record a release of the mortgage (§ 701.04). | Failure to provide an estoppel upon request or to execute and record a mortgage release within 60 days of full payment may lead to legal action, including fines, liability for damages, and payment of attorney's fees. |
| Hawaii | Upon full satisfaction of a mortgage and discharge of any secured debt, the mortgagee must provide a release of mortgage and a reassignment or release of any security interest (§ 506-8). | If the mortgagee doesn't provide the release and reassignment within 60 days of a written request, they may face legal action, including damages and attorney's fees for gross negligence or bad faith. |
| Illinois | Upon full satisfaction and payment of the mortgage or deed of trust, the mortgagee or trustee must provide a written release that can be recorded or registered (765 ILCS 905/2). | If a mortgagee fails to provide a release within 30 days after the debt has been paid, they are liable to pay $200 plus attorney's fees, and the court may compel them to issue the release (765 ILCS 905/4). |
| Indiana | When a mortgage has been fully paid off, the person responsible must officially release, discharge, or satisfy the lien, including partial releases or satisfactions if applicable (§ 32-28-1-1). | If a mortgagor or authorized party demands in writing that a mortgage or lien be released and the owner fails to do so within 15 days, they may owe up to $500, plus legal fees (§ 32-28-1-2). |
| Iowa | Upon full payment of a mortgage, the mortgagee must execute and record a satisfaction within 30 days. For mortgages securing future obligations, a release is required upon written request (§ 655.1). | If a mortgagee fails to discharge a mortgage upon full performance, they are liable for damages, a $500 penalty, attorney's fees, pursued through legal action (§ 655.3). |
| Kansas | Recorded mortgages must be assigned or discharged through a duly acknowledged instrument signed by the mortgagee or their authorized representative (§ 58-2306). | If a mortgagee fails to record satisfaction of a mortgage within 20 days after receiving a written demand, they may be liable for a $500 penalty and attorney's fees (§ 58-2309a). |
| Kentucky | Lienholders must promptly release liens on real property within 30 days of satisfaction. | Failure to release liens may result in legal action where the court can order release and impose penalties of $100 per day from the 15th day after written notice, increasing to $500 per day after 45 days (§ 382.365). |
| Louisiana | A clerk of court or recorder of mortgages can cancel a mortgage with a notary public's or title insurer's affidavit, confirming debt satisfaction (RS 9:5167). | If the mortgagee doesn't provide cancellation documentation within 60 days of full payment, the authorized officer can execute and record a cancellation affidavit in parish records, with potential costs and attorney's fees (RS 9:5167.1). |
| Maryland | Various methods exist to release a mortgage or deed of trust: by endorsing the original document or using a separate instrument, both filed with the clerk and referencing the original recording (§ 3-105). | Failure to comply with the requirements for releasing a mortgage or deed of trust, including providing written evidence within 30 days of demand, may result in covering all associated costs. |
| Michigan | After a mortgage is paid, the mortgagee must file a discharge with the county register of deeds and pay a fee. If not recorded immediately, the register must stamp or electronically mark the date (§ 565.41). | If the mortgagee doesn't discharge the mortgage after full payment, they owe $1,000 plus actual damages and must complete the discharge within 75 days during the first 2 years or 60 days thereafter (§ 565.44). |
| Montana | The county clerk must record a mortgage discharge upon receipt of a certificate from the mortgagee, acknowledging payment or satisfaction, and indexing it accordingly (§ 71-1-211). | A mortgagee who fails to provide a discharge certificate within 90 days of a request is liable to the mortgagor or their heirs for $500 plus actual damages resulting from the delay or refusal (§ 71-1-212). |
| New Jersey | The mortgagee must notify the mortgagor within 10 days of the right to request cancellation upon paying the county fee, and cancel the mortgage with the county recording officer within 30 days of fee receipt (§ 46:18-11.2). | If the mortgagee fails to meet satisfaction recording requirements, the mortgagor can give written notice, leading to a fine of $50 per day after 15 business days, up to $1,000, plus attorneys' fees (§ 46:18-11.3). |
| New York | After paying off the mortgage, the mortgagee must execute and acknowledge a satisfaction of mortgage and record it with the county recording officer within 45 days or provide it upon request (§ 1921). | The court will grant costs and reasonable attorney's fees to the debtor if the mortgagee fails or refuses without valid reason to execute and deliver the satisfaction of mortgage. |
| North Dakota | Upon full payment, the mortgagee must submit a discharge certificate to the county recorder within 30 days, including the recording fee with the balance paid by the mortgagor (§ 35-03-16). | Failure to discharge a mortgage within 60 days of satisfaction or 30 days after receiving a written demand makes the mortgagee liable for all damages and $100 exemplary damages (§ 35-01-27). |
| Ohio | County recorders must leave space on mortgage records for entries of satisfaction, and recording the satisfaction within 90 days is required (§ 5301.36). | Mortgagees failing to record satisfactions within 15 days after receiving notice may face civil actions seeking damages of $100 per day of non-compliance, not to exceed $5,000, plus attorney's fees and costs. |
| Oklahoma | Mortgage or judgment lien holders must release the lien within 30 days of debt payment and record the release with the county clerk (tit. 46 § 15). | Failure to release the lien within 10 days of a written request after the initial 30-day period involves a penalty of 1% of the principal debt per day, capped at $100 per day, recoverable in civil court. |
| Pennsylvania | Recorders of deeds must note assignment details on mortgage records, charging fees as required by law. If mortgages are microfilmed, assignments are recorded without marginal notations (§ 624), | If the mortgagee doesn't acknowledge mortgage satisfaction within 45 days of request and payment, they may be liable for up to the full mortgage amount in any Commonwealth Court of Record (§ 682). |
| South Carolina | A mortgage can be satisfied through direct notation on the record or a formal satisfaction document, which must be recorded by the appropriate county register (§ 29-3-330). | If the mortgagee fails to record satisfaction within three months of payment and request, they may forfeit up to half the mortgage amount or $25,000, plus damages and attorney's fees (§ 29-3-320). |
| South Dakota | Any instrument affecting the title or possession of real property must be recorded by the register of deeds in the county where the property is located (§ 43-28-1). | If a lienholder fails to provide a sworn satisfaction within 10 days of a written demand, the owner can recover all damages, including attorney's fees, and an extra penalty of $100 (§ 44-3-8). |
| Vermont | An assignment or discharge of a mortgage must be recorded in the town records, with a marginal notation linking to the original entry (tit. 24 § 1158). | If a mortgagee fails to provide a payoff statement within five days of a request or deliver a discharge within 30 days of full payment, they face statutory damages of $25 per day, up to $5,000, and other penalties (tit. 27 § 464). |
| Wisconsin | A recorded certificate of payment or satisfaction is required to release a mortgage or lien from the property's official records (§ 706.05). | If not recorded within 30 days, conveyances may be void against subsequent purchasers who record their interests first (§ 706.08). |
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The buyer is not directly responsible for creating the document and filing it with the appropriate agency. In most cases, the lender will take care of those essential steps.
However, you should always do your due diligence and make sure that the process is taken care of. Without the document, the property may continue to show a lien against it, which means that you may have trouble using the home as collateral for a future line of credit (Refer to 46 CFR § 67.265 for relevant regulations regarding instruments evidencing satisfaction or release).
If you have been working to pay it off early, you may want to contact your lender to make sure you cover the exact amount owed, including any final interest payments. Keep the relevant documentation, such as a transaction receipt or confirmation number, for your records. This will serve as proof of your final payment and help validate the completion of your mortgage obligation.
Ensure you’re aware of any early repayment fees that may have been set at the time the mortgage was signed.
Some lenders will automatically track when mortgages are satisfied and send out the relevant paperwork. Others, however, may require you to get in touch with them.
Keep in mind that if you have automated payments to your lender, you may need to get in touch to make sure that those payments stop on time. Your lender will let you know about any extra steps you may need to take.
Some institutions will now allow you to sign your document online. In other cases, you may need to go to your lender in person or take your form to a notary to confirm that you have signed the document.
Track the filing status and make sure that your lender gets everything filled out correctly.
After the satisfaction of mortgage is processed, it’s crucial to verify if the lien against the property has been released properly. You can do this by checking with the local Secretary of State or the relevant government office responsible for recording property documents. They should have records indicating the release of the lien.
Contact the title company if you just closed on a home and bought title insurance and see no release 90 days after closing. Recording fees are usually a part of the closing costs, so be sure this isn’t a fee you’ve already paid for. Reach out to the title agent or real estate attorney for assistance. Until the old mortgage lien is released, it will remain as a cloud on your title, affecting a future property sale.
The form will typically be filed with the county in which the property is located. Make sure that you get a copy for your records. If you have not received one promptly, you may need to contact your lender to request one.
Alternatively, you may need to wait for your county to send you a copy. Keep in mind that the timeline for receiving it may vary depending on the processing times of the county recorder’s office. Obtaining a copy ensures that you have documented proof of the release of the lien on your property.
You can download a satisfaction of mortgage form below in PDF or Word format.
