Legal Question in Real Estate Law in Maryland
Mortgage lien release
Purchased a home in 1985.Refinanced in 1987.Went through title company have title sheet which states we paid for lien release to be recorded in county records.In 1988 mortgage was purchased by another company entity as well as in 1993, 1997, and finally in 2000 by current mortgage holder.Current mortgage holder offered reduced interest rate/no closing cost fees to refinance.However, title search conducted showing no mortgage lien release by refinancing company.Title company who performed settlement in 1987 did not provide mortgage release to county records and is now defunct!How do we obtain mortgage lien release from a defunct company and clear the title? (other company entities did not also submit lien releases in county deed of records office!)
2 Answers from Attorneys
Re: Mortgage lien release
If you purchased title insurance through the chain of transactions then you can rely upon this insurance for protection. If these insurers are not willing to accept their liability then you need legal assistance. Otherwise an accounting of the transactions and lien holdings would be needed for the release of the earlier transaction. A search of the recordings is probably needed. Communication with your current holder is also needed. Contact an attorney should you need assistance.
Re: Mortgage lien release
When your original ('85) mortgage was paid off, the mortgage company should have sent the original promissory note back to you, marked "paid and cancelled" or words to that effect. They may also have sent you a document called a Certificate of Satisfaction. If you kept either of those, they can now be used to release that mortgage. Simply give one or both to the title company or attorney doing the current refinance closing and they can record it. There will be a $30 recording fee.
If you don't have either document, try and contact the original lender or whomever the current version of that lender is. Even though it's a long time ago, they may be able to research it and issue you a new certificate of satisfaction.
If you can't find the original note, and the original lender can't help you, contact the title insurer and they can work this out for you.
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