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You may not want to discharge your mortgage if you plan on using your home as security for a loan or line of credit with the same lender. This includes options such as HELOC s. Learn more about HELOCs .
What does discharge mean for a mortgage?
When your mortgage is paid off, a mortgage discharge should be recorded with the Registry of Deeds to clear your propertys title. A discharge is a document (usually one page) issued by the lender, usually with a title such as Discharge of Mortgage or Satisfaction of Mortgage.
What is the difference between a mortgage discharge and a mortgage release?
Discharge by Payment: If a debt is repaid in full (also known as satisfaction of debt), the property lien can be discharged. This is generally done in one of two ways. Either the landowner sells the property for more than the amount of the debt and uses the proceeds of the sale to pay the debt.
What is the difference between a release and a discharge of a mortgage?
A release of mortgage, commonly known as a discharge of mortgage, is a legal document issued by the lender acknowledging that the mortgage debt is settled. It effectively releases the property from the lien, allowing homeowners clear ownership.
What happens to a discharged mortgage?
It signifies that the loan has been fully paid and that the lender no longer has a claim on the property. Once a mortgage is discharged, the borrower gains full ownership of their home without any encumbrances from the lender.
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46 U.S. Code 31321 - Filing, recording, and discharge
A person may withdraw an application for documentation of a vessel for which a mortgage has been filed under this section only if the mortgagee consents. (e)
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