What happens when you discharge a loan?
What happens when you discharge a loan? A discharge of mortgage is when you remove a home loan from the title of your property. When you have a home loan, the bank holds the Certificate of Title on your property until the home loan is repaid. You also discharge a mortgage when you sell your house or refinance your home loan. Are loans forgiven after 25 years? Loan Forgiveness After 25 years, any remaining debt will be discharged (forgiven). Under current law, the amount of debt discharged is treated as taxable income, so you will have to pay income taxes...