Finance

What is a 'satisfaction of mortgage' and why is it important in Pennsylvania real estate?

AA lender's certification that a borrower is satisfied with their mortgage terms
BA recorded document proving that a mortgage has been fully paid and releasing the lien from the property✓ Correct
CA PHFA document confirming that an affordable housing mortgage meets program requirements
DA borrower's satisfaction survey completed after mortgage closing

Explanation

A satisfaction of mortgage (or mortgage discharge/release) is a recorded document from the lender confirming that the mortgage has been fully paid and releasing the lien. In Pennsylvania, the lender must record the satisfaction (or authorize the mortgagor to do so) within 60 days of full payoff. An unrecorded satisfaction creates title defects for subsequent sales or refinances. Title searches always verify that all prior mortgages have been properly satisfied and recorded.

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