What happens when a mortgage is paid off?

When a mortgage is paid off, the real property to which it is attached ceases to act as security for the loan. In layman’s terms, the house belongs to the former mortgagor (borrower) “free and clear.” If there is a promissory note, trust deed, or other document attesting to the home’s status as security for the mortgage, it will be cancelled and returned to the homeowner.

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