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Home Owners Page Many people do not realize that paying off their loan does not remove the lien against their property. An unreleased lien prevents you from refinancing or selling your property, even if the loan belonged to someone else. The last thing you want to hear when you are buying or selling a home is that your settlement is being held up because when the settlement firm conducted its title search they found an unreleased deed of trust on the property. This can cost you a lot of time and money. The situation becomes especially difficult when the unreleased trust is from a mortgage company that is no longer in business or has merged with another company. Even in extreme circumstances, many lenders do not fully appreciated the financial costs and mental frustration that a borrower or seller must suffer because of an unreleased loan clouding the title to a property and delaying a sale or a refinance. In addition to title problems, unreleased loans can also show up on your credit report as outstanding financial obligations. In spite of the problems created by the failure to record certificates of satisfaction for satisfied loans, unreleased trusts remain a chronic problem in Virginia. The General Assembly has attempted to combat the problem by imposing a $500.00 fine against lenders who fail to release a lien within 90 days from the date the loan was satisfied. |
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