Is there a certain form to use in order to file a Release of 'Assignment of Real Estate Mortgage'? If so, where would I find it and if not, what form should I use? Third question: when I file the Release of Assign of Mtg does that also release the Assign of Leases & Rents? Thanks for any help.

State law issue.

Thanks.

Why do you need to release an assignment? The assignment is given from the original mortgage holder to the current holder. All the current mortgage holder has to do is release the mortgage and the assignment is automatically extinguished.

The assignment of Rents and Leases is part of the mortgage, not the assignment.

If you held an assignment of Mortgage as collateral for your loan, you would not release the Mortgage. You will complete an assignment of mortgage, assigning it back to its original owner. Just because you loan is paid does not necessary mean that the mortgage is paid in full.

I don't understand how you can hold an assignment as collateral. The assignment transfers the Mortgage and that's your collateral.

Every loan we get has an assignment from the original lender to us. From that point on, the original lender is out of the picture. We now hold the mortgage. When that loan is paid in full we issue a satisfaction of mortgage.

I think we are talking about two different things. Mr. B comes to the bank to make a loan. He has as collateral a mortgage from Mrs. A to himself. Mr. B assigns the mortgage to the Bank for collateral on his loan. When his loan is paid in full the Bank would assigned back to Mr. B the original mortgage. Just because Mr. B paid off his loan to the Bank, doesn't mean that Mrs. A has paid off her loan to Mr. B.

I've never heard of a situation like you describe, HallieK. Nor do I think that's what the original poster was talking about either.

Outside of doing a straight up second mortgage, no financial institution I've ever worked for would take a subordinate lie position behind a private mortgage as collateral on money they lend. Just too risky.

TR, what HallieK describes is actually quite common, usually in commercial transactions, and the assignment of leases and rents is a totally separate legal document. The loan secured by the assignment is totally separate from the loan that is linked to the actual mortgage.

TR - You probably just do not do that type of lending and are therefor unfamiliar with it, but as KB said, it is quit common. It happens as Hallie indicated, however you don't just put up the underlying property as collateral, you also pledge the note which the property secures. The bank is not buying nor do they have any responsibility to collect on the underlying loan, that is left to the original lender (usually a private party). You are just taking the loan and associated mortgage as your collateral.

KB & Randy, thanks for the clarification. If there was any indication that the OP was talking commercial I would have stayed out of the discussion entirely.

It could be a consumer transaction, but not your typical residential mortgage transaction.

We have made these type loans also. They are usually, a seller financed transaction. A persons sell their home and owner finances the transaction. They come to the bank and put up the note/DoT as collateral for the loan. We would normally only finance 80% of the loan amount.
When our note is paid we would release the note/Dot back to the person that owner finance property.