Short answer
Look for a recorded satisfaction. Chester County says once a mortgage is paid in full, the lender has 60 days to record a satisfaction piece with the Recorder of Deeds under the Pennsylvania Mortgage Satisfaction Act of 2002. A title search shows whether it was recorded. You can request copies from the Recorder.
What a satisfaction piece is
Chester County's Recorder of Deeds FAQ explains that a satisfaction piece removes a recorded mortgage lien from the property's title once the mortgage is paid in full. The lender is the one responsible for recording it. The page says that under the Pennsylvania Mortgage Satisfaction Act of 2002 the lender has 60 days after payoff to record the satisfaction piece.
How to check
A title search will show whether the satisfaction was recorded. The county page says a homeowner can request copies of the satisfaction, the mortgage and the deed from the Recorder of Deeds. If you are selling, the title company will do the search, but checking earlier avoids surprises. The page notes that no new deed is sent after satisfaction.
If it is missing
Contact the lender or its successor and ask for a satisfaction. Bring your payoff letter or final statement. If the lender no longer exists or has been merged, an attorney can help find the right party. Do this early, because an unreleased mortgage can delay a closing.
Keep your documents
Keep the payoff letter and the original deed from settlement. This page is general information and not legal advice, and this example is from Chester County. Another county Recorder of Deeds can tell you its own process.
Selling for cash instead
Old paperwork problems can hold up a closing for weeks, and a few sellers prefer to avoid that. A cash sale to Kaizen Home Buyers skips the repair list and the agent commission. The purchase is as-is. We can give you an offer within 24 hours and close in 14 to 30 days, or later if you need time. Our phone is 267-329-0084.