Marsha Mayer, Real Estate Pro in WEST PALM BEACH, FL

Is a Satisfaction/Release of Mortgage from a bank recorded in FLA court -after a short sale. Is this a release of my Note as well as the mortgage ?

Asked by Marsha Mayer, WEST PALM BEACH, FL Thu Nov 18, 2010

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There are two things to bear in mind one is the note and the other is the mortgage, The note is the promise to pay and the mortgage is the security or the colateral (Lien). The note is not recorded so there is no release to be recorded there. The mortgage which is the lien is released in a short sale or the sale cannot take place, therefore the mortgage is satisified or the lien would not be released.

However depending on the approval letter that the lender provides the seller and what it states determines what happens next. If the lender does not state that they preserve their right to pursue a dificiency judgement (or similar language) , then that is interpreted as a full release. Bear in mind there are other options eg. the lender may require an unsecured promissory note as a condition to release the lien (mortgage) or may even release the lien (mortgage) but keep the note. Bottomline in a short sale the approval letter determines what could happen after the sale. Hope this makes some sense

This is not legal or any other advise.
Web Reference:
2 votes Thank Flag Link Thu Nov 18, 2010
Not necessarily... Keri Vaugn is a short sale expert with South Florida Title Insurers and is a wealth of knowledge. 561.804.7677 nis her #
1 vote Thank Flag Link Thu Nov 18, 2010
If the Satisfaction of Mortgage states "full payment and satisfaction of said NOTE and Mortgage Deed
and surrenders the same as canceled" as our JPMChase Martin County FL filed satisfaction says,
then the NOTE is "included".

It also states: "and cancel the same of record"..............our lawyer says "same" includes both Note and Mortgage.
0 votes Thank Flag Link Fri Aug 31, 2012
I like this answer!!! Deficiency is still there unless a bank signs off "in-writing" that it has been satisfied.
0 votes Thank Flag Link Mon Feb 6, 2012
Sorry Marsha but I think the satisfaction of the mortgage doesn't relieve the seller of the deficiency. I'm hearing that there are good legal defenses to prevent the lender(s) from going after the seller and attaching wages, etc. Here's an Asset Protection Lawyer and he has helpful info on his site:
0 votes Thank Flag Link Thu Nov 18, 2010
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