Satisfaction, Release or Cancellation of Mortgage by Corporation - Louisiana 2025

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The general rule is that the satisfaction must be in proper written format and recorded to provide notice of the satisfaction. If the lender fails to record a satisfaction within set time limits, the lender may be responsible for damages set by statute for failure to timely cancel the lien.
If the buyer under a bond for deed contract shall fail to make the payments in ance with its terms and conditions, the seller, at his option, may have the bond for deed canceled by proper registry in the conveyance records, provided he has first caused the escrow agent to serve notice upon the buyer, by
You would lose your lien priority if the Mortgage is not recorded. So if he ends up with a judgment, other form of lien, or takes out another Mortgage, unbeknownst to you, you would lose the equity in his home as collateral. And who is he trying to impress?
A release is synonymous to a satisfaction of mortgage since they indicate the borrower has repaid their mortgage loan in full and the lien on the property has been lifted.
That a mortgage is not recorded does not prohibit the commencement of a mortgage foreclosure action. The mortgage contract between the borrower and the lender is no more binding when it is recorded and so legal action can be taken.
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An unsatisfied mortgage occurs when there are unresolved issues related to the repayment of a mortgage loan. Clearing an unsatisfied mortgage is essential for freeing up property titles, improving credit scores and moving forward with future financial plans.

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