Mortgage cancellation – Obtaining redemption from the property registers
The cancellation of the mortgage is the act by which this guarantee is eliminated from the property registers , a different operation from the extinction. Cancellation and extinction of the mortgage are two acts that are often confused by consumers, but which constitute two different moments in the process by which the debtor gets rid of this form of guarantee. The mortgage is in fact the instrument that the banks most often require as a guarantee for the disbursement of mortgages: the most common case is that it is the real estate subject of the mortgage to be mortgaged , so that if the borrower will not be able to repay many installments, the bank will have the reassurance of being able to retaliate on the property.
The extinction of the mortgage is therefore the extent to which the mortgage is canceled: what does it mean?
After the extinction, the mortgage no longer has value as a guarantee of the credit obtained by the bank, like a mortgage. This act occurs for example when the debtor has concluded to repay the debt: from that moment, of course, the bank could no longer claim on the property. Other cases of extinction of the mortgage occur when the terms and conditions to which the mortgage had been signed expire or at least 20 years have passed since its registration in the property registers without the creditors renewing it. The mortgage expires even when the building to which it refers is destroyed or a judge orders its expropriation.
In all these cases, the extinction does not coincide however with the cancellation . Although the mortgage is in fact void after the extinction, the cancellation of the mortgage loan occurs only when the deed has been canceled from the property registers. In fact, one of the acts to activate a mortgage is precisely the registration of the mortgage, so as to also have to pay a registration tax.
The cancellation of the mortgage means that the property is publicly free from restrictions
This can be done automatically and free of charge, in the case of a voluntary mortgage, or even through a deed of a notary. If, instead, a judicial mortgage is pending on the property, it can be canceled only by an order of the judge, after a special judicial procedure has been inaugurated.