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Discharge of Mortgage

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mccarthhyf14 Joined: 06 May 2010 Posts: 1 1.42 Dollars($)	Posted: Thu May 06, 2010 9:23 am    Post subject: Discharge of Mortgage Like 0 Dislike 0 Is there a standard definition of "Discharge of Mortgage?" The context is a short-sale, in Florida. The lender has said that upon receipt of the proceeds (closing from the short-sale) that they will "release the first-lien position (there is no second) and send the borrower a Discharge of Mortgage." Looking at standard forms and googling the term, the Discharge term seems to indicate that it will be "satisfaction" and that no further obligation exists. (No mention of note to be signed, etc.) My question essentially is, Is it certain that the term means satisfaction or could the lender leave out the "satisfaction" part and come after me for the deficiency or sell it to a collector. Or, could they include a payment demand afterwards? The standard forms sold look simple enough but is that a legally binding definition?
smithsussane Joined: 18 Sep 2008 Posts: 10439 Location: Alaska 985.83 Dollars($)	Posted: Thu May 06, 2010 8:28 pm    Post subject: Like 0 Dislike 0 Hi mccarthhyf! Welcome to forums! After a short sale, the lender has the rights to sue you for the deficiency balance resulting from the sale of the property. If you are unable to pay it, then the lender can even charge off the dues to a collection agency. However, if the lender forgives the dues, then he won't come after you. This forgiven balance will be considered as your income and you may have to pay taxes for it. Feel free to ask if you've further queries. Sussane
Francisco Guest	Posted: Wed Sep 07, 2011 9:59 am    Post subject: Satisfaction of Mortgage Like 0 Dislike 0 Many times the lender will be willing to release the mortgage by permitting a "discharge of Mortgage" to be recordedd in satisfaction of the funds it will get even if the loan is not paid in full. (It has the effect of allowing the buyer to obtain clear title to the proeprty, yet the seller may still have a financial responsability). If the remaining financial responsability is forgiven, you owe nothing. If you are still responsible, then you just have unsecured debt.

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