Satisfaction Of Mortgage Explained

Summary

A satisfaction of mortgage in Florida removes the lenders financial interest in a property once the loan is paid off. This does not affect the sellers rights. In land contracts, where the seller can also be the lender, the seller/lender must file a satisfaction of mortgage to remove their financial interest once the loan is fully paid.

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Can't the seller and the lender be the same person if the original agreement was a land contract?
Yes, in Florida, a seller can also be the lender in a land contract, known as a "seller financing" or "owner financing". When the loan is fully paid, the seller/lender must file a satisfaction of mortgage to remove their financial interest.