Satisfaction of mortgage is also known as what?

Satisfaction of mortgage is also known as what?

• A. Cancellation of mortgage
• B. Release of mortgage
• C. Termination of mortgage
• D. Exemption of mortgage

Answer: (B)

The term "satisfaction of mortgage" refers specifically to the act of formally releasing the mortgage lien from the property after the borrower has fulfilled their payment obligations. This process signifies that the debt has been completely paid off and acknowledges that the lender no longer has a claim on the property. The use of "release of mortgage" emphasizes the action taken by the lender to document the fulfillment of the mortgage, ensuring that public records reflect that the debt has been satisfied. This is crucial for the property owner, as it helps to clear the title, allowing them to sell or refinance the property without any encumbrances from the original mortgage. While the other options, such as cancellation, termination, or exemption, might imply similar ideas of ending a mortgage agreement, they do not specifically convey the formal acknowledgment and documentation aspects inherent in the satisfaction of a mortgage. The term "release" is the commonly accepted legal terminology used in the context of satisfying a mortgage.

The term "satisfaction of mortgage" refers specifically to the act of formally releasing the mortgage lien from the property after the borrower has fulfilled their payment obligations. This process signifies that the debt has been completely paid off and acknowledges that the lender no longer has a claim on the property.

The use of "release of mortgage" emphasizes the action taken by the lender to document the fulfillment of the mortgage, ensuring that public records reflect that the debt has been satisfied. This is crucial for the property owner, as it helps to clear the title, allowing them to sell or refinance the property without any encumbrances from the original mortgage.

While the other options, such as cancellation, termination, or exemption, might imply similar ideas of ending a mortgage agreement, they do not specifically convey the formal acknowledgment and documentation aspects inherent in the satisfaction of a mortgage. The term "release" is the commonly accepted legal terminology used in the context of satisfying a mortgage.