Posted on: 16th Jun, 2011 05:39 am
When a person has paid last payment on a recorded loan, how can you get it off the state records?
If the loan was recorded with a deed of trust or something similar, the lender will issue a reconveyance. The reconveyance will release the lien and create clear title as long as there are no other jr, or sr. liens left.
The "recorded loan" would not come off the records. What takes place is that the lender in question issues a release that becomes part of the records, reflecting the debt and indicating that it has been satisfied.
Many states have laws specifying time limits during which satisfaction of mortgage documents must be recorded on residential loans. Also, if a GSE mortgage, this is typically in the servicing contract, e.g. VI, 103 of FNMA
I've never heard that the states (or some of them) had passed legislation mandating a specific timeframe for the recordation of a satisfaction of mortgage.
What penalties ensue in the event of a breach of this law? And, of course, I don't expect chapter and verse for every state that does this, but an example would be pretty neat.
What penalties ensue in the event of a breach of this law? And, of course, I don't expect chapter and verse for every state that does this, but an example would be pretty neat.