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

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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.
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.
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 satisfaction of mortgage notes that you have fully satisfied, or paid off, the mortgage on the property and releases you from further obligations. A lien release, on the other hand, releases the lien from the property. In some cases, may leave a borrower personally liable for any unpaid loan balance.
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.