Mortgage Lien Release (Satisfaction of Mortgage) Forms

A Mortgage lien release or satisfaction of mortgage acknowledges full payment of a mortgage by a borrower. A mortgage lender signs the document to recognize that the borrower has paid the mortgage in full. After signing, the document is filed with the county or land registry to allow the issuance of the title to the new owner of the property. The document shows that the mortgage terms are fully satisfied and that the property’s original owner no longer has a lien on it.

How Satisfaction of Mortgage Works

The use of satisfaction of mortgages differs from one state to the other. Both the rules and the procedures of preparing the document are different among states. However, the responsibility of preparing and signing the document lies with lending institutions. Borrowers are encouraged to speed up their mortgage payments to ensure they get hold of this document as soon as possible.

Apart from getting the satisfaction of a mortgage, paying early also saves you thousands in interest expenses. In addition, you can use the satisfaction of mortgage documents to pledge as collateral for a personal or business loan. It simply shows that you can pay your loans and that you go the extra mile to ensure all the terms are met.

In a particular situation, the mortgage lender can sell the mortgage to another financial institution which means that the original owner of the mortgage will be required to complete the mortgage lien release documentation. If multiple parties have been involved in the mortgage, it may take weeks or months before the documentation process is completed.

How to File Mortgage Lien Release Form

Satisfaction of mortgage document is prepared, signed, and filed when a borrower makes the final payment. The document is created and filed by the mortgagor to acknowledge satisfaction with the mortgagee in the full repayment of the mortgage. The critical steps in the filing of this form include:

Step 1: Identifying the parties

The first step in filing a mortgage lien release form is to identify the parties. The two parties include:

  • Mortgagor: Individual or the party who borrowed funds to buy a home. The mortgagor uses the property as collateral to secure the mortgage. For example, John Doe used his house as collateral to access a $3 million loan.
  • Mortgagee: The financial institution or entity that financed the mortgagor to purchase the home. For instance, ABC Bank offered John Doe a $3 million loan in exchange for his house as collateral.

Step 2: Filling and Signing the Form

Once the parties have been identified, the mortgage lien release should be issued and signed by the mortgagee. In some states, a witness must be present and the following information provided:

  • The total amount of mortgage – The total amount of funds that the mortgagor provided the mortgagee with to purchase the home. In our case, this is the $3 million issued by ABC in loan.
  • Mortgage date of execution – The date when the mortgage was processed and executed in purchasing the home. For instance, ABC Bank and John Doe may have come into an agreement on January 3, 2017.
  • The legal description of the property – A complete and legal description of the property bought with the mortgage, include the tax parcel number. For example, John Doe’s property may be described as “Lot 7, Block 28, First Avenue Section 8 of the Miami-Dade County, Florida.
  • Tax parcel number – The tax parcel number identifies your property for tax, deed, title, and property line reasons. Here is a breakdown of a tax parcel number, 0451 07010005A2 = 0451(Tax Map#), 07 (Subdivision#), 01 (Block#), 0005 (Lot#), and A2 (Sub-lot)
  • Acknowledgment of satisfaction – The mortgagor must acknowledge and declare that they are satisfied that the mortgage has been paid in full and all terms have been met.
  • Acknowledgment of release of the mortgage – The mortgagor must declare the release of the lien or that they will not be filing a lien against the property.
  • The total amount paid – The total amount paid to settle the mortgage must be included in the document. It is the amount paid at the end of the mortgage, including the interest.
  • Notarize: The Satisfaction of Mortgage should have a signature attested to it by a notary.
  • Date – The date when the satisfaction of mortgage was signed. If the mortgage has been fully paid by January 2020, the satisfaction of mortgage may be signed on February 1, 2020.
  • Signatures – Both the mortgagor and mortgagee must sign the document. Their signatures confirm that they both agree to the information provided in the satisfaction of mortgage.

Step 3: Filing and recording the form

The last step is filing and recording the Satisfaction of Mortgage with the Land Registry or Country Recorder’s Office. Only then can the lien on the property by the original owner be considered lifted.

Free Satisfaction of Mortgage Forms

















    Satisfaction of Mortgage Template

    I, the undersigned owner of ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­__________________ of a mortgage and the indebtedness secure by ___________________________________________ to ___________________________ for $___________________________ on the ______________ day of ___________________, and recorded in the Official Record Book ______________________ at page __________ of the records of the County of ______________, do hereby acknowledge that the said indebtedness has been fully paid and all terms of the mortgage met. I do hereby cancel the said mortgage.

    Prepared by:


    Address: ________________________________________________

    City/State: _______________________________________________


    Notary Acknowledgement

    STATE OF ____________________ COUNTY____________________________

    The individual mentioned about appeared before me on this date in his/her stated capacity and acknowledged that this instrument was signed as a free and voluntary act. The deed can be used for the purpose mentioned therein.


    Signature of NOTARY PUBLIC ________________

    Date Commission Expires ____________________

    Affix Notary Seal if Required

    Special Considerations

    As a mortgagee or borrower, you do not have direct responsibility for creating and filing the mortgage lien release. However, you have to follow the process closely and make sure that all steps are completed appropriately. Consider the following:

    Complete the document in time/statutory limit: Ensure that the documentation process is complete on time to avoid delays and statutory issues. In some states, the creation and filing of satisfaction of mortgage are expected to be completed within a specific timeframe. After the document is notarized, it is delivered to the mortgagor to file it to the County Recorder’s Office, County Clerk’s Office, or Land Registry, acknowledging the lift of the lien on the property. Make a confirmation that the document was filed with the right agency since statutory limits differ between states.

    File and record with the appropriate agency: Once the document has been created, follow up to make sure it has been filed with the appropriate agency. Usually, you will receive filing confirmation from the filing agency. First, however, you need to ensure that the document was filed with the appropriate agency, or the property will continue to show lien against it.

    Confirm the Filing was Successful: If the financial party involved does not record and sign the document, they will be held liable for damages and penalties paid to the borrower. However, the borrower will not be able to sell the property until they can provide legal documentation for the satisfaction of the mortgage. Therefore, it must be confirmed that the filing is done successfully by the mortgagee.


    Why does my Satisfaction of Mortgage form have a large blank header?

    The large blank header is the space left for the Country Recorder to append its stamp. The document is then assigned a filing number and any other helpful information added to this space, which helps identify and record the document.

    What’s the difference between a Deed of Reconveyance and a Satisfaction of Mortgage?

    A deed of reconveyance differs from a Satisfaction of Mortgage in that it is a legal document used to transfer the property’s title from the Trustee to the mortgagor. It acknowledges that the mortgagor has fulfilled all payments and duties under a Deed of Trust. Although the two documents serve the same purpose, different states choose one over the other.

    Do I need to Notarize my Satisfaction of Mortgage?

    Yes, it would be best to notarize your satisfaction of mortgage as it will ensure and show that a state-appointed official has properly authenticated the document.

    Where do I record my Satisfaction of Mortgage when complete?

    Once complete, the Satisfaction of Mortgage should be filed with the City Registrar, County Recorder, Recorder of Deeds, or Land Registry Office. You can easily find the appropriate office for filing online to ensure that the previously obtained mortgage is now fully paid and that there is no longer a lien on the property. If you are working with a traditional lender, you can expedite the process by ensuring they fulfill their obligations of satisfying the mortgage in a friendly manner. Failure to record the Satisfaction of Mortgage means that the lien will remain on the property’s title. Depending on the state, a Deed of Reconveyance may be called a Satisfaction of Mortgage.

    What does it mean to satisfy a loan?

    When you satisfy a loan, it means you have repaid it in full and met all the terms of the loan.

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