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Nebraska Assignment and Satisfaction of Mortgage Law

Real Property – Mortgage Satisfaction – Nebraska

Assignments Generally: Lenders, or holders of mortgages or deeds of trust, often assign mortgages or deeds of trust to other lenders, or third parties.  When this is done the assignee (person who received the assignment) steps into the place of the original lender or assignor.  To effectuate an assignment, the general rules is that the assignment must be in proper written format and recorded to provide notice of the assignment.

Satisfactions Generally: Once a mortgage or deed of trust is paid, the holder of the mortgage is required to satisfy the mortgage or deed of trust of record to show that the mortgage or deed of trust is no longer a lien on the property. The general rule is that the satisfaction must be in proper written format and recorded to provide notice of the satisfaction.  If the lender fails to record a satisfaction within set time limits, the lender may be responsible for damages set by statute for failure to timely cancel the lien. Depending on your state, a satisfaction may be called a Satisfaction, Cancellation, or Reconveyance.  Some states still recognize marginal satisfaction but this is slowly being phased out.  A marginal satisfaction is where the holder of the mortgage physically goes to the recording office and enters a satisfaction on the face of the the recorded mortgage, which is attested by the clerk.

Nebraska Law

Execution of Assignment or Satisfaction: Must be signed by the mortgagee.

Assignment: It is recommended that an assignment be in writing and recorded.

Demand to Satisfy: When the obligation secured by any mortgage has been satisfied, the mortgagee shall, upon receipt of a written request by the mortgagor, execute and deliver a release of mortgage in recordable form to the mortgagor. Any mortgagee who fails to deliver such a release within  sixty days after receipt of such written request shall be liable to the mortgagor for one thousand dollars or actual damages resulting from the failure, whichever is greater, plus costs and attorney fees.

Recording Satisfaction: Any mortgage shall be discharged upon the record thereof by the register of deeds in whose custody it shall be, whenever there shall be presented to him a certificate executed by the mortgagee, acknowledged or proved or certified, specifying that such mortgage has been paid, or otherwise satisfied and discharged.

Penalty: See above, Demand to Satisfy.

Acknowledgment: An assignment or satisfaction must contain a proper Nebraska acknowledgment, or other acknowledgment approved by Statute.

Nebraska Statutes

76-252. Release of mortgage; required; when; failure to deliver; effect; damages.

When the obligation secured by any mortgage has been satisfied, the mortgagee shall, upon receipt of a written request by the mortgagor or the mortgagor’s successor in interest or designated representative or by a holder of a junior trust deed or junior mortgage, execute and deliver a release of mortgage in recordable form to the mortgagor or mortgagor’s successor in interest or designated representative, as directed in the written request.

Any mortgagee who fails to deliver such a release within sixty days after receipt of such written request shall be liable to the mortgagor or the mortgagor’s successor in interest, as the case may be, for five thousand dollars or actual damages resulting from the failure, whichever is greater. In any action against the mortgagee pursuant to this section, the court shall award, in addition to the foregoing amounts, court costs, including reasonable attorney’s fees, and may further order the mortgagee to execute a release. Successor in interest of the mortgagor shall include the current owner of the property and shall also include the person issuing a payoff check in accordance with the terms of a payoff letter from a mortgagee.

76-253. Mortgage; record; certificate of discharge or satisfaction.

Any mortgage shall be discharged upon the record thereof by the register of deeds in whose custody it shall be, whenever there shall be presented to him a certificate executed by the mortgagee, his legal personal representative or assignee, acknowledged or proved or certified as prescribed in sections 76-216 to 76-236, specifying that such mortgage has been paid, or otherwise satisfied and discharged.

76-254. Mortgage; record; certificate of discharge or satisfaction; how indexed.

Every such certificate and the proof or the acknowledgment thereof shall be indexed in the order of mortgages and recorded at full length. In the record of discharge the register of deeds shall make a reference to the book and page or computer system reference where the mortgage is recorded.



Inside Nebraska Assignment and Satisfaction of Mortgage Law