Escrow & Title
What is a 'satisfaction of mortgage' in Illinois and why is it important?
AA lender's certificate that the borrower qualifies for additional financing
BA recorded document that confirms a mortgage has been fully paid and releases the lien on the property✓ Correct
CA buyer's confirmation that they are satisfied with the mortgage terms
DAn annual statement showing the remaining mortgage balance
Explanation
A satisfaction of mortgage (also called a release of mortgage or discharge of mortgage) is a document executed by the lender confirming that the mortgage loan has been fully repaid. It must be recorded in the county recorder's office to release the lien from the property's title.
People Also Study
Related Illinois Questions
- In Illinois, which type of mortgage instrument conveys legal title to a third-party trustee until the loan is repaid?Finance
- In Illinois, which of the following is typically used to release (satisfy) a mortgage lien after the loan is paid in full?Escrow & Title
- In Illinois, the recording of a deed in the county recorder's office provides:Escrow & Title
- In Illinois, recording a deed at the county recorder's office provides:Escrow & Title
- Which of the following mortgage provisions allows the lender to demand full repayment of the loan if the property is sold or transferred without the lender's approval?Finance
- When property is owned by an Illinois land trust, the trustee must execute any deed, mortgage, or other instrument affecting title at the direction of:Property Ownership
- In Illinois, the grantor-grantee index in the county recorder's office is organized by:Escrow & Title
- A buyer with excellent credit qualifies for a conventional mortgage. The property appraises for $280,000, but the buyer agrees to pay $295,000. The lender will base the loan amount on:Finance
Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
Math Concepts
Study This Topic
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →