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  • Writer's pictureDonna Rosato

The importance of receiving a lien satisfaction (Mobile Notary Service)

Updated: Nov 6, 2023

A few years ago, I had the pleasure of doing a Mobile Notary Service for a family who had purchased their home using a personal loan from their parents. A private mortgage was filed with the county by the attorney. Several years went by and the loan was repaid. However, a lien satisfaction was never filed. Therefore, the mortgage on the property was still in place. This presented several issues. When the couple wanted to refinance, the parents had passed on. Fortunately, the siblings cooperated and signed off on any claim they could have had on this couple’s property.

A lien satisfaction is a legal document that proves that a lien has been paid off and released. It is important to receive a lien satisfaction for a number of reasons, including:

To protect your investment: If you are buying a property with a lien on it, you want to make sure that the lien is released before you close on the sale. This will ensure that you are getting a clear title to the property and that you are not responsible for any outstanding debts.

To prevent legal issues: If a lien is not released, the lienholder and or their heirs may have the right to repossess the property or file a lawsuit against you. This can lead to financial hardship and stress.

To improve your credit score: A lien on your credit report can lower your credit score. Once the lien is released, your credit score should improve over time.

To show financial responsibility: Having a lien released shows that you are responsible for your debts and that you are willing to pay them off. This can be beneficial when applying for loans or credit cards in the future

In addition to these general reasons, receiving a lien satisfaction is also important for specific types of liens, such as:

Mortgage liens: When you pay off your mortgage in full, your lender is required to release the mortgage lien. This will allow you to sell or refinance your home without any restrictions.

Tax liens: If you have a tax lien on your property, the IRS will not release it until you have paid the full amount of the debt, plus interest and penalties. Once the lien is released, you will be able to sell or refinance your home without having to worry about the IRS taking your property.

Mechanic's liens: If you have a mechanic's lien on your car, the mechanic will not release it until you have paid the full amount of the bill. Once the lien is released, you will be able to sell or trade in your car without any restrictions.

If you have any type of lien on your property, it is important to take the necessary steps to get it released. This will protect your investment, prevent legal issues, improve your credit score, and show financial responsibility.

Here are some additional tips regarding lien satisfactions:

  • Keep a copy of all of your payment records. This will help you to prove that you have paid off the lien in full.

  • Contact the lienholder as soon as you have paid off the lien. Request a lien satisfaction letter in writing.

  • If you do not receive a lien satisfaction letter within a reasonable period of time (30 to 60 days), follow up with the lienholder. You may need to send a certified letter or have an attorney contact the lienholder on your behalf.

Once you have received a lien satisfaction letter, be sure to keep it in a safe place. This document will protect you from any future claims by the lienholder.

Notary, traveling Notary, Mobile Notary

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