In types of mortgage A legal mortgage is a lien on your property that the mortgage company holds in return for your monthly payments. Legal mortgages have all blanks filled in with accurate information and are signed in the appropriate locations. They're also recorded in accordance with the county's laws and regulations. Legal mortgages are legally binding contracts that oblige you to make your loan installments or face foreclosure.

When you've paid off your property, the lender may send it to you, together with any other relevant documentation, along with a letter confirming that the debt is paid in full. Lenders' policies and procedures, on the other hand, differ. Some lenders simply record a release with the county's property land registrar. Others delegate the responsibility for recording the release to you depending on the paperwork they supply. Make sure you receive copies of everything, regardless of how your lender handles it.