What happens when mortgage is discharged?

A discharge of mortgage is removing 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.

Why would a bank release a mortgage?

A release eliminates your home as collateral from a mortgage loan. A mortgage loan payoff, including a refinance or sale, is the usual method of generating a release of mortgage lien. While there may be other reasons for releasing a mortgage lien, including a lien filing in error, these releases are rare.

How do I get a mortgage lien release from a closed bank?

If you can’t find out which company took over, call the Federal Deposit Insurance Corporation’s (FDIC) lien release number at (888) 206-4662 (toll free) or visit the Closed Banks and Asset Sales section on the FDIC’s “Contact Us” page.

How long does a mortgage company have to release a lien?

In most cases, the lien holder (the lender in this case) should send the release to be recorded within 30-90 days. If you aren’t sure what the requirements are in your area, reach out to your real estate agent, title agent, or real estate attorney for guidance.

When does the mortgagor have to release the mortgage?

If, at the end of the fifty-day period, the holder has failed to release the mortgage, the mortgagor may at any time request in writing the holder of the mortgage to release the mortgage and the holder of the mortgage shall have ten (10) days from the date of the request to release such mortgage.

What does it mean to be in error on a mortgage?

This would include anything that you believe is in error after you have closed on your loan and begun making your payments to us. This would not include errors that occurred in the closing of your loan or before that.

What happens if my mortgage does not release a lien?

Your persistence will be rewarded, as the lender will learn that you’re serious and committed to removing this lien. When you refinance your home, you will pay off your current loan. Your new mortgage lender cannot record its lien until the prior lender releases its lien.

Where do I file a release of mortgage?

Local recorders of deeds maintain the real estate records and are the appropriate agencies to file mortgage releases with. Your lender must complete release of lien documents, provided by your state government, to eliminate the lender’s interest in your home.