Escrow & Title

What is the purpose of a satisfaction of mortgage (mortgage release) in Iowa?

AIt conveys the property to a new owner
BIt releases the lender's lien on the property once the loan is paid in full✓ Correct
CIt modifies the terms of an existing mortgage
DIt subordinates the first mortgage to a second lien

Explanation

A satisfaction of mortgage (mortgage release) is recorded when a mortgage loan is paid in full. It removes the lender's lien from the public record, clearing that encumbrance from the title.

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