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Recording a satisfaction of mortgage is significant because it indicates that the mortgage has been fully paid off, effectively removing it as a lien against the property. This process involves the lender signing off on the mortgage, which is then filed in public records. It is important to note that official record books do not remove past documents; instead, they add new documents to reflect changes in the title. A recorded satisfaction confirms that the debt is settled, which is crucial for future title searches. Additionally, homeowners should obtain the promissory note after paying off the mortgage, as it may be considered a negotiable instrument.
