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#32481 - 09/12/02 04:26 PM Urgent: Mortgage Release Question
GenerousLife Offline
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Joined: Feb 2002
Posts: 1,466
USA
Scenario: Customer paid off mortgage. We did not release mortgage timely. Customer requested release via phone. Mortgage still didn't get released. Now we have an unhappy customer.

Should we have accepted a verbal request from the customer or must it be in writing? Where do I even begin to look? UCC, state law, HELP!
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#32482 - 09/12/02 04:34 PM Re: Urgent: Mortgage Release Question
Andy_Z Offline
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On the Net
Your state's law probably define when a lien/mortgage needs to be released. This will generally be within X days and it may require that you release it by filing, or by providing documents necessary to do so to the borrower.
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#32483 - 09/12/02 05:29 PM Re: Urgent: Mortgage Release Question
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
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Bloomington, IN
This is the code for Indiana. I agree with Andy, your state probably has a similar code.

Any owner, holder, or custodian of any mortgage or other recorded lien who fails, neglects, or refuses to release the debt after it has been fully paid within 15 days of receipt of a written demand, shall pay the mortgagor a sum not to exceed $500. The amount may be recovered by suit in any court of competent jurisdiction, together with costs and reasonable attorney’s fees. [Ind. Code 32-8-1-2.]
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#32484 - 09/12/02 07:05 PM Re: Urgent: Mortgage Release Question
GenerousLife Offline
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Joined: Feb 2002
Posts: 1,466
USA
Thanks to those who answered. I have found the cite for Oklahoma from my state banking association. 46 O.S. 15 It is similar to Indiana, except we go 10 days and up to $100 per day. The mortgagor must make a WRITTEN request.
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#32485 - 09/12/02 07:53 PM Re: Urgent: Mortgage Release Question
Sponge Steve Offline
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Sponge Steve
Joined: Jun 2002
Posts: 299
Midwest
Also, if you used the secondary market standard mortgage instrument, one of the final paragraphs likely says the bank will promptly record and pay for the discharge. So it's a state law and contract issue.
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#32486 - 09/22/05 06:42 PM Re: Urgent: Mortgage Release Question
Anonymous
Unregistered

What are the state compliance times for releasing liens once a loan is paid in full?

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#32487 - 09/22/05 06:43 PM Re: Urgent: Mortgage Release Question
waldensouth Offline
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waldensouth
Joined: Nov 2001
Posts: 7,979
FINALLY ABOVE the gnat line
What state are you in?
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#32488 - 09/22/05 06:48 PM Re: Urgent: Mortgage Release Question
Anonymous
Unregistered

Every state...is there a site I can visit to view all 50 state compliance time?

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