Legal Question in Credit and Debt Law in Maryland

If I'm understanding your question, you have an outstanding balance on your mortgage and you sold your home. At the closing, the mortgage was not picked up in the title search and you were therefore not asked to pay off the remaining balance at closing. Your question is whether that loan is basically forgiven/waived since the mortgage company did not file your mortgage in the land records.

Even though the mortgage lender was stupid for failing to record the mortgage, the answer is that you will still owe the outstanding debt. The reason is that you like signed both a "Note" and mortgage (sometimes called a "Security Deed" or "Deed to Secure Debt). Although the mortgage was not recorded it is still valid. Likewise, the Note is a contract (your promise to repay the loan) and the lender can sue on the Note alone.

Best of luck.*****The above is for informational purposes only and does not create an attorney-client privilege.******