What happens when a mortgage is discharged?

What does it mean if a mortgage is discharged?

It means that you have no personal liability on the mortgage, but the lender still has a lien on the house for payment of the loan. If you don’t make your payments on time, the lender can foreclose and require the trustee to sell the property.

What happens after discharge of mortgage?

When you take out a mortgage, the bank holds the title on your property until you have completely repaid your home loan. Once you have paid the mortgage in full, you will need to go through a process to have the loan discharged and the lender removed from the title of your property.

How long does a mortgage discharge take?

Time frames will vary depending on your lender, but typically it takes at least 10-15 business days to complete the discharge of mortgage. The length of time can vary. A partial discharge can take at least six weeks to finalise.

What is the process of discharging a mortgage?

Here’s how to discharge your mortgage: Speak to your lender – The first step is to contact your lender and discuss your plan of releasing the mortgage with them. The lender will ask you to complete a Discharge Authority form, which is available on a lender’s website in most cases, to initiate the process.

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Who pays for discharge of mortgage?

4. What do i need to know? The buyer’s representative ensures that the seller’s representative has allowed for the Discharge of Mortgage Fee in the adjustments. The Lodgement Fee for the Discharge of Mortgage is paid from the pool of source funds (e.g. loan proceeds or purchaser’s equity).

Who records a mortgage discharge?

When you pay off your loan and you have a mortgage, the lender will send you — or the local recorder of deeds or office that handles the filing of real estate documents — a release of mortgage. This release of mortgage is recorded or filed and gives notice to the world that the lien is no more.

What is the purpose of a discharge form?

You need to complete a mortgage discharge form when you want to remove your lender from the title to your property. You do this when paying pay off your mortgage entirely or when you refinance from one lender to another.

Are mortgage discharge fees legal?

Luckily for borrowers, in 2011 the Federal Government outlawed home loan exit fees. That means that for all new mortgages, an exit fee must not by law be included in the repayment terms. If you’re worried that your lender may simply call the fee a different name, don’t be – that is illegal too.

How do I get my deed to my house after I pay off my mortgage?

Once you’ve made your last mortgage payment, it’s your responsibility to make sure that your mortgage note or deed of trust is released from your county’s office of land records. You can do this by filing a certificate of satisfaction. Some lenders do this for their clients.

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