Can't find mortgage satisfaction, what to do?

Question

I've lived in this home for about 20 years. My parents had mortgaged the house with some old mortgage company and had paid off the mortgage. I'm trying to sell the home now and a title search is saying that the mortgage is unpaid, but I am 100% sure it is paid off. I can't find a satisfaction of mortgage payment letter on my side because my parents have passed away. The mortgage company that gave the mortgage was gone long ago and purchased by a new bank. Their records are gone. My parents were paying property tax etc. and never ever had a problem with someone claiming the mortgage hasn't been paid. I've actually already hired a lawyer and she has gathered tons of evidence and has already brought this information to court, but he tells me that a judge must review the information. It's been almost a year and I am still waiting for my money to get released from the title company. My attorney assures me that my case is solid. Is there anything I can do to try to speed up this process?

Answer 1

Have you checked with your county? The mortgage company is supposed to file a lien release with the county. Maybe they did. That would be all the proof you would need.

Answer 2

1. After a mortgage is paid off the lender prepares a "mortgage satisfaction piece" which is then recorded in the recorder of deeds office in the county of where the real estate is located. It's ultimately the borrower's responsibility to make sure the piece gets recorded.

2. The original "promissory note" the lender is holding is marked "paid in full" or words to that effect and returned the borrower evidencing payment of the debt.

3. It's possible the piece never reached the recorders office. But the note should be in your parents paperwork.

4. A title search will reveal what type of financial interest any party has on the property title.

5. Have your attorney file a "quiet property title suit" This will alert anybody with a claim to come forth and prove the claim.

Answer 3

It is EXTREMELY common to find a mortgage on the titlework where it was previously paid off and the satisfaction was never recorded.

When I was underwriting loans, about 40% of the title work that I reviewed, still had the previous mortgage on it, especially if the owners frequently refinanced.

Your attorney is correct, but your attorney is also LAZY. The problem isn't difficult to resove...if the bank is no longer in existance, and it cannot be legally proven that the servicing was sold to someone, and the original trustee on the loan can no longer be contacted, then the court has the SOLE DISCRETION to remove the mortgage from the title work.

I have seen this several times when someone dies and an old mortgage is left...but I have also NEVER seen it take more than 60 days to resolved.

Tell your attorney to get a move-on or you will be finding another one.