During the amortization of a mortgage loan (if the property is sold) or at the end of this type of loan, a mortgage release procedure must be put in place to release the property from the pledge.
What about the loan consolidation?
Release or Termination: What is it?
Like the mortgage, the release or the lifting of the mortgage is the subject of a notarial deed and a registration at the mortgages office of the department on which the property depends. Thus, the release is considered as a legal act by which a bank or credit institution (the creditor) certifies that the borrower (the debtor) has finished repaying his current home loan. However, the “hand” “raised” occurred automatically two years after the end of the credit, but since the reform of the securities, this period has been reduced to only one year. As in the establishment of a mortgage guarantee, the release also generates various costs (notary, registration, release of mortgage). However, some lending institutions include these fees in the initial calculation of the mortgage waiver fees.
The “show of hands” in the credit pool
In the pool of credits, the release mainly concerns loans subject to a mortgage guarantee. In general, real estate loans. Thus, the grouping of credit including mortgages real estate, often involves a raised hand or a mortgage on the property. The release of a mortgage on a credit surrender is almost systematic when the borrower owns real estate secured by a mortgage. By this notarial act, the bank or the initial credit institution, which is also the beneficiary of the mortgage, agrees to no longer be so. To know that the real estate resale and without lifting of mortgage, the initial lender can sell the property in case of dispute even if the owner of the property has changed.
“Free Hand” or “Mortgage Waiver”: some features
Like the mortgage guarantee, the release must be established by the notary and registered to the mortgage custody. In the redemption of mortgage, this registration remains valid for the duration of the new loan. However, it is of no consequence at the end of the payment of the last monthly payment and one year after, the release disappears without expenses nor any formality. Moreover, in the event of default by the borrower and if no hands were raised, the lender may put his guarantee at stake by having the property seized and then sold.