Is a Mortgage a Transfer of Property or Lien?

A mortgage is a financial tool used to secure a debt tied to a piece of real property. The mortgage or trust deed used to finance the purchase of a home creates a lien on your property’s title. This means that your property may not be “transfered” without that lien being satisfied.

Transfering of real property takes place when said mortgage is paid off. This is applicable to a refinance and sale transaction. In other words, anytime a mortgage/lien is paid off, and a new transfer of property occurrs. In the case of a refinance, even though you are still the homeowner, a transfer of real property still takes place. Your name will remain on title as the property being vested under whatever you & escrow decide on.

The transfer occurs when your current mortgage company excepts payment in full from the new mortgage company which is assisting you in the refinance. After the loans rescission is expired, the new lender disburses final funds and your county acknowledges the new “transfer” of property by recording the refinance transaction.

In the event of sale, all property rights are “transfered” to the new buyer and they may or not use a mortgage to complete the transaction. All transfers of property, refinance and sale, are recorded and attached to both the owner of record at time and subject property through the County Recorder’s office.