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When I pay off my mortgage am I effectively "negotiating an instrument"?

Bellevue, WA |

It seems like my mortgage has been assigned and re-assigned and my understanding is that the note, a negotiable instrument, has been negotiated several times. When I pay off the note am I also 'negotiating" the instrument?


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Attorney answers 2


No. When your promissory note is paid off, it should be marked as cancelled and returned to you. A negotiable instrument is "negotiated" when someone writes "pay to the order of" someone else on it and signs it over to that someone else.


No - a mortgage pay off is not negotiating an instrument - though your check used to pay off the mortgage is a negotiable instrument.

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