I'm currently in escrow on a rental I'm selling and something interesting came up. When I bought this property, I took a 2nd mortgage on it for a period of two weeks to cover my down payment while another property was closing. Once that other property closed, I was able to pay off that second and replace the down with proceeds from the sold property.
Years later, I'm in escrow selling the property and this closed 2nd mortgage is still showing. It doesn't show on my credit because it's paid off, but the lien still shows. In most cases, the lender on the 2nd could be asked to verify it's closed status but guess who the lender was...LEHMAN BROS! Still haunting me from the grave and unable to attest it's closed. My title company is working on rectifying the issue and fortunately it was found quickly after opening escrow so it hopefully won't delay things much.
Does anyone have ideas on how to clear this up?