Satisfaction, Cancellation or Release of Mortgage Package - Arkansas 2025

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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.
Negligence: Breach of the lender duty of care that leads to damage such as financial trouble for the borrower.
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?
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.
A satisfaction of mortgage is a document that proves the borrower has paid off the mortgage in full, freeing the loans lien on the property and giving the title to the borrower.

People also ask

A closing package is a collection of documents that youre required to sign on closing day to finalize your home purchase or refinance. It includes title, homeownership, and mortgage documents.
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.
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.

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