When the mortgagor pays off his/her note the loan holder is responsible for releasing the lien on the property. This is the form we use in most cases. The object of a good release is to make sure a title examiner who finds the loan in the County Records can match up the release with it. We use several identifying characteristics on this document such as: original borrower name(s), date of the original loan, date of the Deed of Trust, Volume and Page of the recording, document number if available, original amount of loan, and original lender’s name. If you can get the majority of these items in your document, it should be clear to any title examiner what lien is being released. Once we have the release ready, we sign and file it with the county clerk and have the recorded document forwarded to the homeowner. I like to keep a permanent copy of the recorded instrument in my files as well. It is a pretty simple document, here is a sample.
You can use this as a guideline to write your own and make it work for you. Please seek legal counsel before using any of the information or examples of documents posted on our site. Every state has its own laws, rules and regulations, we are based in Texas and follow its guidelines. I hope you find this information helpful. If you are interested in selling a note, we might be your buyer. Please feel to contact us and we will make you an offer.
Best of Luck,