The Mortgage Instrument (The Security)

While the Note is the promise to pay, the Mortgage is the document that pledges the property as collateral. It connects the debt to the house.(a) Parties to a Mortgage (The "Two O's" Rule)This is the #1 confusion point for new students.Mortgagor: The Borrower (The Owner). You give the mortgage (the pledge) to the bank. Mortgagee: The Lender. They receive the pledge.(b) Satisfaction of MortgageWhen the loan is paid in full, the lender must record a Satisfaction of Mortgage. This document clears the lien from the public records, proving the house is free and clear of that debt. Florida law requires the mortgagee to cancel the mortgage and provide the mortgagor with a recorded satisfaction within 60 days. This document restores to the mortgagor all rights and interest in the real property that were previously conveyed to the mortgagee. Once the satisfaction of mortgage is recorded in the public records, it officially confirms that the mortgage lien has been released.