Legal Question in Real Estate Law in Maryland
Refinancing--Preventing Slow release recording from being a problem.
I hear many lenders fail to meet their obligation to record releases within 30 days of a payoff. My payoff to lender A occurred on May 30. I have a new refinance pending with a lock that expires in mid-August. The payoff to lender ''A'' was disbursed directly from my current lender to lender ''A'' without involvement of a settlement agent because it was a ''streamline'' program.
Is there anything I should do to insure my refinance does not get wrecked and I do not incurr large fees in getting my old mortgage from lender A released? Is this an issue the title company settling the new loan should be able to handle relatively easily and inexpensively? If the answer to these is no, would I have recourse against a lender that is tardy in recording releases?
2 Answers from Attorneys
Re: Refinancing--Preventing Slow release recording from being a problem.
It's the responsibility of the title company or attorney who handled your last refinance to see that all old liens are released. If you check your payoff statement from Lender A, and it indicates that you were charged a recording fee or lien release fee, it means that they are going to record a release directly with the land records. If not, they will send you the cancelled note and possibly a document called a Certificate of Satisfaction. It then becomes your responsibility to send it to the title attorney or title company handling your new refinance so they can record it as a release. It often takes a few months for this process to be completed.
Re: Refinancing--Preventing Slow release recording from being a problem.
I think I recall Maryland statute provides a penalty for not recording the release lien?. You may need to fix the title yourself. It may take weeks to months before you get the release notice from the mortgagee.
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