When people purchase their home they often do not know what the title company and their lender do to ensure that any mortgage gets paid when the homeowner goes to sell or refinance the home. The title company takes some of the documents you sign at the closing and records them in the land records in the county (or Baltimore City) in which the property is located. You can actually search here to see what documents are recorded in your name in the land records. There is a free password required.
But what happens when you go to refinance your home? The title company takes the funds from the new lender and pays off the old lender. It then records your new mortgage in the land records. One thing that is supposed to happen, but often does not, is that a document titled “Release” or “Certificate of Satisfaction” is recorded in the land records. This document tells anyone who is looking that this first mortgage was paid off. If the release is not properly filed, someone who is looking at your title to determine what liens might exist on the property will think that this lien is still on the property, even though the loan was paid off. This can lead to delays in settlement when you try to sell or refinance the home. It is important that your first mortgage is released if you refinance.
Another issue that sometimes happens is that a bank will accidentally file a release when it should not have because the loan is not paid off. In order to fix it, the bank will likely have to file a lawsuit in court, in order to get the Release or Certificate of Satisfaction stricken. It is very important if this is done that everything is done accurately, so that the title to your house is not damaged.
Baltimore real estate lawyers at Huesman, Jones & Miles have represented both lenders trying to strike releases that they filed by accident and borrowers who had lenders wrongfully trying to undo releases that have been validly filed. If you are in this situation, you should have experienced attorneys helping you to ensure that the title to your home is correct. Call us today at (443) 589-0150 or submit an online inquiry form.
