The mortgage discharge process involves a few steps. Once the client applies, the lender has time to review the request. The process involves paperwork and verification, so the client needs to remain engaged. We explore the mortgage discharge process in brief detail.
Submit the Application
A property financed by a lender entitles them to ownership of the property until it’s paid off. Once the mortgage is paid in full, the lender remains listed on the property’s title. To remove the lender from the title, a client requests a discharge. If there’s more than one property on the same loan, clients can request a partial discharge to remove one dwelling. If this is a residential property, the client requests a full discharge.
To start the discharge property, apply.
Review Process
Clients who paid off the mortgage in full request the discharge. Others request it because they’re going to sell the home or they intend to refinance the home loan.
The review process allows the lender to review the application and request. They’re verifying the names on the loan, the property’s information, and the contract. When a lender discharges a property, their books change. So, they have to prepare for a shift in their finances. Essentially, they’re no longer going to hold a property that built up equity.
Completion
If everything checks out, the mortgage receives the discharge according to the client’s request. The partial discharge takes a little longer because it’s one of many properties. Plus, the client intends to secure another home loan.
Mortgage Discharge Process Conclusion
The mortgage discharge process takes between 10 to 15 days to complete. If the client requests a partial discharge, it takes up to six weeks to complete. For more information, mortgage brokers can contact our Mortgage Street lending team. They’ll walk through the steps with you and offer some guidance for your client.