Assignment of Deed of Trust by Individual Mortgage Holder
Assignments Generally: Lenders, or holders
of mortgages or deeds of trust, often assign mortgages or deeds of trust
to other lenders, or third parties. When this is done the assignee
(person who received the assignment) steps into the place of the original
lender or assignor. To effectuate an assignment, the general rules
is that the assignment must be in proper written format and recorded to
provide notice of the assignment.
Satisfactions Generally: Once a mortgage
or deed of trust is paid, the holder of the mortgage is required to satisfy
the mortgage or deed of trust of record to show that the mortgage or deed
of trust is no longer a lien on the property. 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. Depending on your state,
a satisfaction may be called a Satisfaction, Cancellation, or Reconveyance.
Some states still recognize marginal satisfaction but this is slowly being
phased out. A marginal satisfaction is where the holder of the mortgage
physically goes to the recording office and enters a satisfaction on the
face of the the recorded mortgage, which is attested by the clerk.
Mississippi Law
Assignment: Assignments in whole or in
part of any indebtedness secured by mortgage, deed of trust, or other
lien of record, shall be entered on the margin of the record
of the lien or said assignment shall be acknowledged and filed for record.
Demand to Satisfy: Upon full payoff, borrower
may make written demand upon the lender to satisfy the deed of trust, whereupon
lender has one month to do so or face liability.
Recording Satisfaction: Any mortgagee or
cestui que trust, having received full payment of money due, shall enter
satisfaction upon the margin of the record of the mortgage or deed of trust,
which entry shall be attested by the clerk of the chancery court and discharge
and release the same
Marginal Satisfaction: Having received
full payment of the money due by the deed of trust, lender shall enter
satisfaction upon the margin of the record of the deed of trust, which
entry shall be attested by the clerk of the chancery court and discharge
and release the same.
Penalty: If not satisfied of record within
1 month of written request, penalty of $200 and liability for other damages.
Acknowledgment: An assignment or satisfaction
must contain a proper Mississippi acknowledgment, or other acknowledgment
approved by Statute.
Mississippi Statutes
§ 89-5-17. Assignments of indebtedness to be marked
on record.
Except as provided in Section 89-5-37, all assignments in whole
or in part of any indebtedness secured by mortgage, deed of trust,
or other lien of record, shall be entered on the margin of the record
of the lien or said assignment shall be acknowledged and filed for record,
and if the assignor or assignee of said indebtedness fail to comply with
the provisions of this section the debtor shall be fully protected in transactions
with the holder of record in the absence of actual notice of the assignment.
SEC. 89-5-21. Entry of satisfaction upon record of mortgage or
deed of trust.
(1) Except as otherwise provided in this subsections (3), (4) and
(5) , any mortgagee or cestui que trust, or assignee of any mortgagee or
cestui que trust, of real or personal estate, having received full payment
of the money due by the mortgage or deed of trust, shall enter satisfaction
upon the margin of the record of the mortgage or deed of trust, which
entry shall be attested by the clerk of the chancery court and discharge
and release the same, and shall bar all actions or suits brought thereon,
and the title shall thereby revest in the grantor.
(2) Any such mortgagee or cestui que trust, or such assignee, by
himself or his attorney, who does not, after payment of all sums owed,
within
one (1) month after written request, cancel on the record the mortgage
or deed of trust shall forfeit the sum of Two Hundred Dollars ($200.00),
which can be recovered by suit on part of the party aggrieved, and if after
request, he fails or refuses to make such acknowledgment of satisfaction,
the person so neglecting or refusing shall forfeit and pay to the party
aggrieved any sum not exceeding the mortgage money, to be recovered
by action; but such entry of satisfaction may be made by anyone authorized
to do it by the written authorization of the mortgagee or beneficiary,
duly acknowledged and recorded, and shall have the same effect as if done
by the mortgagee or beneficiary.
(3) With respect to a mortgage or deed of trust which states on
its face that it secures a line of credit, satisfaction of record shall
be accomplished and extinguishment shall occur as provided in subsection
(5).
(4) As used in this section, the term "line of credit" means any
loan, extension of credit or financing arrangement where the lender has
agreed to make additional or future advances.
(5) Any mortgagee or cestui que trust, or the assignee of a mortgagee
or cestui que trust, under a mortgage or deed of trust securing a line
of credit shall, upon (a) the termination or maturity of the line of credit
and the payment of all sums owing in connection with the line of credit,
or (b) the payment of all sums owing in connection with the line of credit
and a written request by the debtor to cancel the line of credit and the
mortgage or deed of trust securing the line of credit, enter satisfaction
upon the margin of the record of the mortgage or deed of trust, which entry
shall be attested by the clerk of the chancery court and discharge and
release the same, and shall bar all actions or suits brought thereon, and
the title shall thereby revest in the grantor. For the purpose of this
subsection ( 5 ), the requirement of a written request by the debtor may
be satisfied by a prospective creditor's delivery of a document, signed
by the debtor, requesting cancellation of the line of credit and the mortgage
or deed of trust securing the line of credit.
§ 89-5-29. Mortgages and deeds of trust on land; how recorded.
Except as hereinafter provided, all mortgages and deeds of trust
upon land given to secure the payment of money, and all instruments
of writing whereby a trustee is substituted under any such deed of trust,
and all instruments of writing canceling or satisfying, or authorizing
the cancellation or satisfaction of any such mortgage or deed of trust,
shall
be recorded separately from other instruments relating to land or records,
and such records shall be called "records of mortgages and deeds of trust
on land."
