Escrow & Title
In Illinois, which of the following is typically used to release (satisfy) a mortgage lien after the loan is paid in full?
AA satisfaction of mortgage (or release of mortgage) recorded in the county recorder's office✓ Correct
BA verbal statement from the lender to the borrower
CAutomatic expiration of the lien after 30 years
DA letter from the title company to the county assessor
Explanation
When a mortgage is paid in full (satisfied), the lender records a Release of Mortgage (or Satisfaction of Mortgage) in the county recorder's office where the property is located. This releases the lien from the public record and clears the title. Illinois law requires lenders to record a release within a specified time after payoff. Failure to record the release can cloud the title and create problems when the owner tries to sell.
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