Posted by eric on May 17, 2000 at 10:20:24:
No, you don’t need to record it at all. It’s totally up to you. Of course, if they default, they’ve probably also not paid some other people, contractors, etc., who will by then have recorded their liens, and thus be in a superior position to you. You will then have no real recourse to collect on the debt, since the property will be over-leveraged.
I would HIGHLY recommend you record your mortgage instrument, as soon as possible after creating it. If they pay it off, then you just record a Satisfaction of Mortgage, a fairly ubiquitous legal form.