When a property is pledged as collateral for a loan, a mortgage has to be filed on the property. Once the process is complete, the mortgage is said to be perfected. A property can have more than one mortgage filed against it. A lender can start foreclosure proceedings if the borrower stops paying. When a mortgage loan is paid off, the lien or the mortgage is released, which means the property is no longer used as collateral.
Step 1
Sign the mortgage document. Before a mortgage is filed on the property, it must be signed by a representative from the lender and the borrowers. There is also a place for someone to sign as a witness to the transaction. Anyone whose name is on the deed must sign the mortgage. Your spouse must sign even if they are not on the mortgage. A title search will reveal all names on the property. The lender will notarize the mortgage document after everyone has signed. Everyone signing the mortgage is not necessarily responsible for the repayment of the loan. It all depends on whether their income and credit information was used for the processing of the loan. Check your state laws to see if there are exceptions to the signing requirement.
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Step 2
Distribute the copies to the borrowers. The borrowers must receive copies of the signed mortgage document after it has been notarized. The mortgage document usually has three copies. Two copies are sent to the county courthouse, along with a filing fee, to be filed within the court documents. Mortgages are filed in the county where the property is located by the land records department or the cashier department within the recording office. The amount of the mortgage loan and the date of the loan are recorded. Anyone can look up the mortgage with the property address and get all of the details about the loan by visiting the county courthouse. Some information can be found online as well.
Step 3
File the mortgage when you refinance. If you decide to refinance your mortgage loan, the original mortgage that was filed needs to be released. A new mortgage will be prepared, which has to be filed to reflect the new amount of the mortgage loan. The borrowers must sign the new mortgage, along with a representative from the mortgage lender. All signatures must be signed exactly as they appear on the title report. The court records will show when the old mortgage was released and the new mortgage was filed.
Tip
Filing of a mortgage is done by the land records department or the cashier department within the recording office. This function could be handled by other departments within the court. You should call the county courthouse for the exact department.
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