Release of Mortgage - Individual
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
rule 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.
Nebraska Law
Execution of Assignment or Satisfaction:
Must be signed by the mortgagee.
Assignment:
It is recommended that an assignment be in writing and recorded.
Demand to Satisfy:
When the obligation secured by any mortgage has been satisfied, the mortgagee shall, upon receipt
of a written request by the mortgagor, execute and deliver a release of
mortgage in recordable form to the mortgagor. Any mortgagee who fails to
deliver such a release within sixty days after receipt of such written
request shall be liable to the mortgagor for one thousand dollars or actual
damages resulting from the failure, whichever is greater, plus costs and
attorney fees.
Recording Satisfaction:
Any mortgage shall be discharged upon the record thereof by the register of deeds in whose
custody it shall be, whenever there shall be presented to him a certificate
executed by the mortgagee, acknowledged or proved or certified, specifying
that such mortgage has been paid, or otherwise satisfied and discharged.
Penalty:
See above, Demand to Satisfy.
Acknowledgment:
An assignment or satisfaction must contain a proper Nebraska acknowledgment, or other acknowledgment
approved by Statute.
Nebraska Statutes
76-252 - Release of mortgage; required; when; failure to
deliver; effect; damages.
When the obligation secured by any mortgage has been
satisfied, the mortgagee shall, upon receipt of a written request
by the mortgagor or the mortgagor's successor in interest or designated
representative or by holder of a junior trust deed or junior mortgage,
execute and deliver a release of mortgage in recordable form to the mortgagor
or mortgagor's successor in interest or designated representative. Any
mortgagee who fails to deliver such a release within sixty
days after receipt of such written request shall be liable to the mortgagor
or the mortgagor's successor in interest, as the case may be, for one
thousand dollars or actual damages resulting from the failure, whichever
is greater. In any action against the mortgagee pursuant to this
section, the court shall award, in addition to
the foregoing amounts, the cost of suit, including reasonable
attorney's fees, and may further order the mortgagee to
execute a release. Successor in interest of the mortgagor shall
include the current owner of the property.
76-253 - Mortgage; record; certificate of discharge or satisfaction.
Any mortgage shall be discharged upon the record thereof by the register of deeds in whose custody it shall be, whenever there shall
be presented to him a certificate executed
by the mortgagee, his legal personal representative or assignee,
acknowledged or proved or certified as prescribed in
sections 76-216 to 76-236, specifying that such mortgage has been paid,
or otherwise satisfied and discharged.
76-254 Mortgage; record; certificate of discharge
or satisfaction; how indexed.
Every such certificate and the proof or the acknowledgment
thereof shall be indexed in the order of mortgages and recorded
at full length. In the record of discharge the
register of deeds shall make a reference to the book and page or
computer system reference where the mortgage is recorded.