Mortgage
Assignments
This instrument is generally lodged when a mortgage holder transfers his interest in a mortgage to another.
The document must have the following:
- First party (assignor)
- Second party (assignee) and their mailing address
- The name of the party or parties who executed the original mortgage
- The mortgage book and page reference where the mortgage is lodged for record
- A Preparation Statement
The document must be: signed by the mortgagor(s) and the signature(s) acknowledged(notarized). The document must be filed in the county clerk’s office of the county where the property is located(or the greater part).
Condominium Mortgages
The document requires
- First party (mortgagor, borrower)
- Second party (mortgagee, lender) and their mailing address
- Amount of the mortgage
- Maturity date (except for revolving credit accounts which do not require a maturity date), relating to obligations, if the document states “due on demand” this requirement is satisfied
- Legal Description of the property (Common Law and OAG 81-100)
- Preparation Statement
Document must be: signed by the mortgagor(s) and the signature(s) acknowledged (notarized). The document must be filed in the county clerk’s office of the county where the property is located (or the greater part).
Master Form Mortgage
Kentucky law provides that a “Master Form for a Mortgage” may be filed in the county clerk’s office of any county. After this document has been recorded other mortgage documents can incorporate a reference to this document. The incorporation of the reference shall have the same effect as if the provisions of the master form had been set forth fully in the mortgage.
Recording Requirements
- Must be entitled on the face “Master form recorded by __________” (name of the person causing the instrument to be recorded)
- Contain forms of covenants, conditions, obligations, powers, and other clauses of a mortgage
- The name of the person or entity causing it to be recorded
- The instrument does not need to be acknowledged
- Preparation Statement
Master Form Mortgage – Incorporation Into Other Mortgages
After the Master Form Mortgage is recorded, any of the provisions of such master form instrument may be incorporated by reference in any mortgage of real estate if:
- The reference in the Mortgages states that the master form instrument was recorded in the county in which the mortgage is offered for record
- The Mortgage states the date when the master form instrument was recorded
- The Mortgage states the book & page where the master form instrument was recorded
- The recording of any mortgage, which has the reference of the Master Form Mortgage incorporated into the document, will have like provisions of the Master Form Mortgage
MERS (Mortgage Electronic Registration System)
County Clerk offices are receiving mortgages that name the borrower & usually a bank followed by the statement: MERS as nominee.
In these cases county clerk offices should index the borrower & MERS & nothing else.
After the document has been filed MERS is the legal holder of the mortgage. Any change, assignment or release must come from MERS.
Mortgage
*also known as Indenture of Trust
The document must have
- First party (mortgage, borrower, grantor, trustor)
- Second party (mortgage, borrower, grantee, trustee) and their mailing address
- Amount of mortgage
- Maturity date (except for revolving credit accounts which do not require a maturity date), relating to obligations, if the document states “due on demand” this requirement is satisfied
- Legal Description of the property (A source of title is not required, however, it is desirable to have)(Common Law & OAG 81-100)
- Preparation Statement
The document must be: signed by the mortgagor(s) and the signature(s) acknowledged(notarized). The document must be filed in the county clerk’s office of the county where the property is located(or the greater part).
Mortgage Modification/Extension
The document must have
- First party (mortgagor, borrower)
- Second party (mortgagee, lender) and their mailing address
- State the book and page of the original mortgage
- Description of the modification
- Preparation Statement
The borrower (mortgagor) must sign the document. The signatures must be acknowledged (notarized). The document must be filed in the county clerk’s office of the county where the property is located (or greater part).
Release
*also known as Deed of Release, Satisfaction of Mortgage, Discharge of Mortgage
The document must have the following information
- Name of the person or entity releasing the obligation
- Name of the individual or entity being released
- The mortgage book and page reference being released, or the deed book and page in the case of a vendors lien
- Partial releases require a description of the property being released
- Release must state whole or partial release
- Preparation Statement
Document must be signed by the party or parties executing the release and the signature(s) notarized.
Mortgage Release to Secure Additional Indebtedness
KRS 382.520 provides statutory direction for renewal, extension or additional loan under a mortgage on real estate. It also defines the superiority of liens & makes a provision to request a mortgage release to secure additional indebtedness.
This document is not a deed of release but a notice to the Senior Mortgage holder of a request to secure additional debt by the mortgagor.
The provisions are as follow:
- The request must be written
- The request must refer to KRS382.520(2) & (3)
- The request shall be signed by the mortgagor or his/her agent or attorney
- It must set forth a description of the real property to which the request relates
- It must include the date, parties to, the volume and initial page of the record of the original mortgage
- It must have a description of the nature, amount, and holder of the lien or encumbrance that the mortgagor intends to place upon such real property
The clerk shall request a return mail address.