Assignment of Mortgage
The recorded document that transfers the mortgage or deed of trust (the lien) from one holder to another when a note is sold.
An assignment of mortgage (or assignment of deed of trust) is the legal document that transfers the security instrument — the lien on the property — from one note holder to another. When you sell a mortgage note, two things must move to the buyer: the debt (the promissory note, transferred by endorsement, often via an allonge) and the lien (the mortgage or deed of trust, transferred by an assignment). The assignment is what gets recorded in the county land records so the public chain of ownership stays accurate.
Why the assignment must be recorded
Recording the assignment puts the world on notice that the buyer is the new secured party. This protects the buyer's lien position and is usually required before the new holder can foreclose. An unrecorded or missing assignment is a classic defect: it can cloud the chain of title, delay enforcement, and force corrective filings. Buyers and closing title companies confirm that every transfer of the lien is documented by a recorded assignment, from the original lender all the way to the seller.
Note endorsement vs. mortgage assignment
It is essential to keep two parallel chains aligned:
- Endorsement chain (the note): Each sale of the debt is reflected by an endorsement on the note or an attached allonge. This is governed by the UCC's negotiable-instruments rules.
- Assignment chain (the lien): Each sale of the security instrument is reflected by a recorded assignment in the land records.
The principle that "the mortgage follows the note" means the lien is meant to travel with the debt. But because they are documented differently, gaps can appear — a note may have been endorsed without the matching assignment being recorded, or vice versa. A clean note has both chains complete and consistent.
What happens at your sale
When you sell your note, the closing typically includes preparation and recording of an assignment from you to the buyer. The title company verifies the prior assignment chain, prepares the new assignment, and records it. If a prior assignment was never recorded, a corrective or confirmatory assignment may be needed before closing — another reason a complete collateral file speeds the sale.
Preparing to sell
Before you request a quote, locate the recorded mortgage/deed of trust and every assignment showing how the lien reached you. If you originated the note yourself on property you sold, you are likely the original payee and there may be no prior assignments — the cleanest possible situation. Either way, organized assignment records are part of what supports a strong, fast offer.