a satisfaction of mortgage, also known as a mortgage lien release, is a legal document provided by the mortgagee (financial institution) advising that the mortgage has been paid in full, all terms of the loan have been satisfied and there will no longer be a lien on the property. the appropriate parties should be documented on the satisfaction of mortgage. the mortgagor, the individual(s) or borrower(s) of funds to secure and pay for a home, whom utilized the home for collateral in order to secure the loan. the satisfaction of mortgage should be signed by the mortgagee, after it has been issued. in addition the following information should be included: upon signature and notarization of the document, the document should be recorded with the local county recorder’s office or land registry. each state has a different statutory limit in which the satisfaction of mortgage will be required to be filed by. in the event the lender or responsible financial party does not record and sign the satisfaction of mortgage, they will be liable for all damages and penalties paid to the borrower.