A buyer in Spartanburg, South Carolina closes on a home purchase and signs both a promissory note and a mortgage. She later sells the home and pays off the loan. The lender must take a specific action to release the mortgage lien from the public record. Which document accomplishes this?
Correct Answer
A) A satisfaction of mortgage (mortgage release), recorded in the county register of deeds
When a mortgage is paid off in South Carolina, the lender must execute and record a satisfaction of mortgage (also called a mortgage release or discharge) with the county register of deeds. This document removes the mortgage lien from the public record and confirms that the debt has been satisfied. Recording the satisfaction protects the borrower's clear title.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
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