Escrow & Title
In Oregon, a 'satisfaction of mortgage' (or 'release of mortgage') serves the same function as a deed of reconveyance in that it:
ATransfers ownership from the lender to the borrower
BReleases the lien from the property record when a loan is paid off✓ Correct
CConfirms the buyer's right to occupy the property
DEstablishes the purchase price on the public record
Explanation
A satisfaction of mortgage (for mortgage-theory states) or deed of reconveyance (for deed-of-trust states like Oregon) both serve to release the lender's lien from the property record when the loan is fully repaid. Oregon primarily uses deeds of trust, so reconveyance deeds are most common.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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.
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