Mortgage lien removal not recorded

5 Replies

Trying to help my mother with an unreleased mortgage lien on her home in Maryland. Long story short, the property is now 100% paid off but the county failed to record the payoff. My mom recently applied for a new HELOC which discovered the issue. Anyone have experience with resolving a similar issue?

Thanks in advance!

The county doesn't fail to record the payoff...they file what they get to record from the lien holder.  The former mortgage holder will need to file a lien release with the county clerk of court.  Contact the mortgage company and advised that the lien was not released from the official records. The title company assisting with the transaction can help facilitate this with the mortgage company.  It does happen...and always discovered when it's really inconvenient.  

Hope this helps...

Thanks Patricia!  That's the direction I was leading her.  As I'm helping her dig into the details it's becoming a more complicated situation since the original lender was acquired by Citi who has so far been unwilling to help.  Didn't think to go back to the title company though, will try that direction next.
 

@Scott Wolf That is not accurate. There is no mention of a refinance... only a HELOC paid in full some time ago by a borrower. It was the lender who was obligated by law to release the lien once paid.

Citi as successor will eventually determine this has been paid and will record a release. Sure, the current title company can help in preparing a release for execution, but that would be curative action to help get the current transaction to the table, not their responsibility.

Originally posted by @Tom Gimer :

@Scott Wolf That is not accurate. There is no mention of a refinance... only a HELOC paid in full some time ago by a borrower. It was the lender who was obligated by law to release the lien once paid.

Citi as successor will eventually determine this has been paid and will record a release. Sure, the current title company can help in preparing a release for execution, but that would be curative action to help get the current transaction to the table, not their responsibility.

You're 100% right.  Should've read it more closely.