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Old 03-08-2018, 10:21 AM
 
Location: ☀️ SWFL ⛱ 🌴
2,109 posts, read 1,426,108 times
Reputation: 7497

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We sold our NY house in December for over list price to a cash buyer and all went well with a relatively fast closing. There was one issue though: we couldn’t locate our loan release or cancelled mortgage documents. Usually mortgage companies release the lien and forward it to the county to be recorded in our state and send something acknowledging the loan has been paid off to the mortgage folder. That didn’t happen and we hadn’t followed up to see that it did.

$5k has been held in escrow for three months while this was being settled. Our original mortgage was through Chase Manhattan and resold to Fleet and Washington Mutual, neither exist now. We paid the mortgage off fifteen years ago, so we had a cold trail to follow.

Our lawyer’s paralegal has been a pitbull dealing with Chase to get a release. After multiple emails that started in mid-December the release has finally been sent to our county to be recorded. Following that paper trail through different defunct companies and back to Chase and their bureaucracy has been a slow process.

Here’s a link on what needs to be done when that last mortgage payment is made. It’s been a mess we could have easily avoided if we had educated ourselves.

https://www.thinkglink.com/2017/07/1...-what-happens/

Last edited by jean_ji; 03-08-2018 at 11:17 AM..
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Old 03-08-2018, 12:04 PM
 
Location: The Triad (NC)
26,878 posts, read 57,960,239 times
Reputation: 29313
Quote:
Originally Posted by jean_ji View Post
We sold our NY house in December There was one issue though:
we couldn’t locate our loan release or cancelled mortgage documents.

Our lawyer’s paralegal has been a pitbull dealing with Chase to get a release.
The question is about the BUYER's attorney and THEIR efforts to get these various documents
in order to protect the title policy and their client who is the one who would be most affected by these encumbrances.
Correct?

Quote:
It’s been a mess we could have easily avoided if we had educated ourselves.
Or asked the buyers attorney to share his file?
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Old 03-08-2018, 12:34 PM
 
Location: ☀️ SWFL ⛱ 🌴
2,109 posts, read 1,426,108 times
Reputation: 7497
There were no liens found on the property by the title company, the property taxes and insurance had been been paid by us for the past 15 years, and our credit report shows a 0 balance on the loan. The other lawyer and seller agreed to the 5k escrow until a title release could be obtained.

If this had been a conventional loan instead of cash, the sale would not have gone through until the lien was released. I was worried we might have to obtain a surety bond also called a lost trust deed note bond If we couldn’t trace it through the defunct companies and get a release. Those are usually a percent of the sale price, which is what the 5k in escrow was about.

Last edited by jean_ji; 03-08-2018 at 12:45 PM..
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Old 03-08-2018, 07:18 PM
 
6,361 posts, read 7,339,306 times
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Quote:
Originally Posted by jean_ji View Post
There were no liens found on the property by the title company, the property taxes and insurance had been been paid by us for the past 15 years, and our credit report shows a 0 balance on the loan. The other lawyer and seller agreed to the 5k escrow until a title release could be obtained.

If this had been a conventional loan instead of cash, the sale would not have gone through until the lien was released. I was worried we might have to obtain a surety bond also called a lost trust deed note bond If we couldn’t trace it through the defunct companies and get a release. Those are usually a percent of the sale price, which is what the 5k in escrow was about.
I thought I understood your situation, but now you're confusing me.
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Old 03-08-2018, 07:28 PM
 
10,274 posts, read 6,515,435 times
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Quote:
Originally Posted by jackmichigan View Post
I thought I understood your situation, but now you're confusing me.
Maybe she means release the loan and is confused and said lien.

She said there were no liens.

Does a lender hold a lien when they issue a mortgage?

I always thought liens were debts owed related to the home that have to be paid before the home is yours or that amount will be held and paid when a sale goes thru.
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Old 03-08-2018, 08:13 PM
 
Location: ☀️ SWFL ⛱ 🌴
2,109 posts, read 1,426,108 times
Reputation: 7497
Quote:
Originally Posted by jackmichigan View Post
I thought I understood your situation, but now you're confusing me.
That was confusing, wasn’t it? My apologies. There is no lien, but the problem is there is no official lien release document recorded with the county.

Last edited by jean_ji; 03-08-2018 at 08:23 PM..
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Old 03-08-2018, 08:17 PM
 
Location: ☀️ SWFL ⛱ 🌴
2,109 posts, read 1,426,108 times
Reputation: 7497
Quote:
Originally Posted by LifeIsGood01 View Post
Maybe she means release the loan and is confused and said lien.

She said there were no liens.

Does a lender hold a lien when they issue a mortgage?

I always thought liens were debts owed related to the home that have to be paid before the home is yours or that amount will be held and paid when a sale goes thru.
I’m not an expert, which is why we have a real estate lawyer handling this. Well, that and the fact that you are forced to use a lawyer when closing in NY. In this case I’m glad we did and I’m grateful.

Quote:
All mortgages are liens, but not all liens are mortgages.
The above quote come from the link below and explains more:

https://www.quora.com/How-do-a-lien-...ortgage-differ
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