Question 1

What is a mortgage release in Florida?

Accepted Answer

A mortgage release (also called a satisfaction of mortgage) is a document recorded in the county public records that confirms the mortgage has been paid in full and releases the lien from the property. In Florida, Section 701.04 requires: the mortgagee (lender) to execute and record a satisfaction of mortgage within 60 days after the mortgage has been paid in full. The satisfaction must: identify the mortgage being satisfied (by recording information: official records book and page, or instrument number), state that the mortgage has been paid in full, be signed by the mortgagee (or their authorized representative), and be recorded in the county where the mortgage was recorded.

Question 2

What happens if a Florida lender fails to release a mortgage?

Accepted Answer

Failure to release: under Section 701.04: if the lender fails to record a satisfaction within 60 days after payoff, the borrower can: send a written demand to the lender (requiring the satisfaction within 30 days), and if the lender still fails to comply, file a lawsuit to compel the satisfaction. The borrower may recover: actual damages (costs incurred due to the unreleased mortgage), a statutory penalty of $500 (per Section 701.04(3)), attorney fees and costs, and in some cases, additional damages for cloud on title. Unreleased mortgages create problems for the property owner: they cloud the title (making it difficult to sell or refinance), they may prevent the owner from obtaining title insurance, and they can delay or prevent closings.

Question 3

How does a Florida property owner obtain a mortgage release?

Accepted Answer

Process: (1) pay the mortgage in full (through a regular payoff, refinancing, or sale of the property), (2) request a payoff statement from the lender (the lender must provide the payoff amount, including any fees and per diem interest), (3) wire the payoff amount to the lender (the title company or closing agent typically handles this), (4) the lender processes the payoff and prepares the satisfaction of mortgage (this may take 30-60 days), (5) the lender records the satisfaction in the county public records, and (6) the property owner should verify that the satisfaction was recorded (check the county clerk’s website or contact the title company). If the lender fails to record the satisfaction within 60 days, the property owner should send a written demand under Section 701.04.

Mortgage Release

Mortgage Release in Florida

Requirements

Failure to Release

Process

Related Terms

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