What must be done for a mortgage to be legally discharged?

For a mortgage to be legally discharged, a satisfaction of mortgage must be filed. This document serves as official proof that the mortgage obligation has been fulfilled and the debt has been paid off completely. Once the lender confirms that the borrower has met all conditions of the mortgage, the satisfaction is executed and recorded with the appropriate office, often the county recorder. This process ensures that the property is clear of the mortgage lien and can be sold or transferred without encumbrance.

Additionally, the satisfaction of mortgage provides a public record protecting the borrower's ownership rights, confirming that the lender no longer has an interest in the property. This is essential for maintaining accurate and clear property records, which can impact future transactions involving the property. Without this filing, the mortgage could still be considered active, potentially leading to complications in the future.