Partial Release of Property From Deed of Trust for 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.
Oregon Statutes
Chapter 86
TITLE 9
MORTGAGES AND LIENS
Chapter 86. Mortgages; Trust Deeds
86.060 Assignment of mortgage.
Mortgages may be assigned by an instrument in writing, executed and acknowledged with the same formality
as required in deeds and mortgages of real property, and recorded in the
records of mortgages of the county where the land is situated.
86.100 Discharge of record on deed of release.
Any mortgage shall be discharged of record whenever there is presented to the recording officer
a certificate executed by the mortgagee, or the personal representatives
or assigns of the mortgagee, acknowledged or proved and certified as prescribed
by law to entitle conveyances to be recorded, specifying that such mortgage
has been paid or otherwise discharged. Every such certificate, and the
proof or acknowledgment thereof, shall be recorded at full length.
86.140 Liability of mortgagee for failure to discharge mortgage.
If any mortgagee or the personal representative or assignee of the mortgagee,
after full performance of the condition of the mortgage before or after
a breach thereof, shall, within 30 days after being thereto requested,
and after tender of reasonable charges, fail to discharge the same, or
to execute and acknowledge a certificate of discharge or release thereof,
that person shall be liable to the mortgagor, or the heirs or assigns of
the mortgagor, in the sum of $500 damages and also for all actual damages
occasioned by such failure, to be recovered in an action at law. The
owner and holder of the promissory note referred to in ORS 86.110 is deemed
the personal representative of the mortgagee for the purposes of this section.