Escrow & Title
The purpose of a 'satisfaction of mortgage' (or deed of reconveyance in a trust deed state) is to:
ACreate a new mortgage on the property
BLegally release the mortgage lien from the property when the loan is paid off✓ Correct
CTransfer the mortgage to a new lender
DAdjust the mortgage interest rate
Explanation
A satisfaction of mortgage (or deed of reconveyance) is recorded when a mortgage loan is paid in full, formally releasing the lender's lien from the property and returning full title to the owner free and clear of that encumbrance.
Related Alaska Escrow & Title Questions
- In Alaska, a 'reconveyance deed' is recorded when:
- Under the Real Estate Settlement Procedures Act (RESPA), a 'controlled business arrangement' (AfBA) requires all EXCEPT:
- When is a deed considered legally delivered in Alaska?
- In Alaska, which of the following is considered an 'involuntary transfer' of title?
- In Alaska, a 'deed in lieu of foreclosure' allows a borrower to:
- In Alaska, a 'legal description by reference' in a deed means the property is identified by:
- In Alaska, a 'materialman's lien' (mechanics' lien) can be filed by which of the following parties?
- A title insurance policy that protects the lender's security interest in the property is called a(n):
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