After 30 years of payments, Elena Brooks receives written confirmation that her home loan has been paid in full. She now wants the public record to show that the lender's lien has been released. Which document most directly accomplishes that result?
Correct Answer
D) A satisfaction, release, or reconveyance of the lien
A satisfaction, release, or reconveyance is the document used to show that the security interest has been discharged after payoff. Once recorded, it gives public notice that the lender's mortgage or deed of trust lien is no longer encumbering the property.
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Related Topics & Key Terms
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Related Concepts
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
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