Escrow & Title
A satisfaction of mortgage (mortgage release) is recorded when:
AA borrower makes their first payment
BThe mortgage loan is fully repaid and the lender releases their lien✓ Correct
CThe property is sold to a new buyer
DThe title company issues a final policy
Explanation
When a mortgage is paid in full, the lender must record a satisfaction (release) of mortgage to remove the lien from the public record, clearing the title for the property owner.
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