Selling house 1st mortgage never released

[Adone]

What is the name of your state (only U.S. law)? OHIO
So we are in the process of selling our house and found out that our 1st mortgage company never released our loan after we have refinanced it, first mortgage company is out of business and now we cant sell our house what do we do? How do we get it released have all documents of the refinance and payoff but mortgage was never released.

 

[justalayman]

define:

out of business


while the company you dealt with may no longer be operating, very few businesses simply disappear, or more correctly, the business they were involved in. Somebody buys the business or some other company purchases the debts and assets. Their business often carries on in some manner often with some subsequent entity having the rights to act as you need.


If there truly is no subsequent entity, you have have to file a quiet title action with the courts seeking an order stating there is no outstanding claim by the former mortgage lender.

 

[Adone]

define:

out of business


while the company you dealt with may no longer be operating, very few businesses simply disappear, or more correctly, the business they were involved in. Somebody buys the business or some other company purchases the debts and assets. Their business often carries on in some manner often with some subsequent entity having the rights to act as you need.


If there truly is no subsequent entity, you have have to file a quiet title action with the courts seeking an order stating there is no outstanding claim by the former mortgage lender.

I bought the house then a couple months later the mortgage company contacted me stating their interest rates dropped and asked if I wanted to refinance. I agreed to refinance. Then the mortgage company went out of business and sold the refinanced mortgage to another business. I then refinanced 3 years ago at a lower interest rate and the company who bought the 2nd mortgage released that lien. Now I am trying to sale and found out the original lien was never released. The title company told since I only ever paid the mortgage company that went out of business on the original loan that the business who bought the loan couldn't release the first lien. Since this original mortgage company was in Michigan and the house is in Ohio, which courts would I need to go through to get the quiet title action .

Thanks for speedy replies

 

[justalayman]

the court the property is located.

The title company told since I only ever paid the mortgage company that went out of business on the original loan that the business who bought the loan couldn't release the first lien.

purchasing a loan and paying off a loan via refinancing are very different issues. I suspect the refinance is the proper term but just to be clear; which was it?

 

[Adone]

the court the property is located.




purchasing a loan and paying off a loan via refinancing are very different issues. I suspect the refinance is the proper term but just to be clear; which was it?

1-Purchased house with Washtenaw mortgage
2-refinanced house through washtenaw mortgage 2 months later
3-washtenaw mortgage goes out of business and another mortgage takes over
4-refinanced with first financial at lower interest rate and the refinanced to washtenaw mortgage lien is released
5- the original mortgage was never released from the first refinance.

No loans were never paid off these were refinances.

 

[justalayman]

1-Purchased house with Washtenaw mortgage
2-refinanced house through washtenaw mortgage 2 months later
3-washtenaw mortgage goes out of business and another mortgage takes over
4-refinanced with first financial at lower interest rate and the refinanced to washtenaw mortgage lien is released
5- the original mortgage was never released from the first refinance.

No loans were never paid off these were refinances.

are you saying there was 3 security interests involved above? I am only seeing 2.

at #1 a lien was established. at #4 a new lien was established . Apparently you are saying there was a third lien involved somewhere. Where exactly?

Depending on how things were written there was not necessarily a reason to release and reassert a lien when moving from #1 to #2 and then from #2 to #3.


let's step back a bit:

what are you finding that is showing Washtenaw still has a lien on the property?

 

[Adone]

are you saying there was 3 security interests involved above? I am only seeing 2.

at #1 a lien was established. at #4 a new lien was established . Apparently you are saying there was a third lien involved somewhere. Where exactly?

Depending on how things were written there was not necessarily a reason to release and reassert a lien when moving from #1 to #2 and then from #2 to #3.


let's step back a bit:

what are you finding that is showing Washtenaw still has a lien on the property?

The title company that we are using to do the closing on our house has found that Washtenaw the very fist mortgage was never released when it was refinanced through Washtenaw again at a lower rate. Washtenaw went out of business and another mortgage company (everhome) took over the refinanced Mortgage. We then refinanced it a couple of years ago at a lower rate through First financial. Now that we are trying to sell the house the Title co. is saying that the very 1st mortgage was never released even though it was refinanced through the same mortgage company, The Mortgage company that took them over (everhome) released the refinanced mortgage but the title company says Everhome can not release the original mortgage since they only had the refinanced mortgage.

Thanks for your time and speedy replies you are a great help
Anthony

 

[justalayman]

the only option I see remaining is taking it to court.

5302.14 Statutory condition meaning and effect.
In a mortgage of real estate, or any interest therein, the words "statutory condition" have the full force, meaning, and effect of the following words and shall be applied and construed accordingly:

"Provided, nevertheless, except as otherwise specifically stated in the mortgage, that if the mortgagor, or his heirs, executors, administrators, assigns, or successors, shall pay unto the mortgagee or his executors, administrators, assigns, or successors, the principal and interest secured by the mortgage, and shall perform all other obligations secured by the mortgage, and shall perform the condition of any prior mortgage, and until such payment and performance shall pay when due and payable all taxes and assessments on the mortgaged premises, shall keep the buildings on said premises insured against fire and other hazards commonly known as Extended Coverage Risks in a sum not less than the amount secured by the mortgage or as otherwise provided therein for the benefit of the mortgagee and his executors, administrators, assigns, and successors, in a company or companies authorized to write insurance business in the state of Ohio and acceptable to the mortgagee, shall pay all premiums therefor, and deliver all policies therefor, to the mortgagee or his executors, administrators, assigns, or successors, and, at least two days before the expiration of any policy on said premises, shall deliver to him or them a new and sufficient policy to take the place of the one so expiring; and shall not commit or suffer any waste of the mortgaged premises or any breach of any covenant contained in the mortgage or in any prior mortgage, then the mortgage shall be void."

as long as you can prove the requirements specified, I do not see why they court would have an issue with voiding the mortgage.

 

[Adone]

the only option I see remaining is taking it to court.



as long as you can prove the requirements specified, I do not see why they court would have an issue with voiding the mortgage.

Thanks for your time and it is well appreciated ... Looks like we will have to re list the house since the buyer wanted to close and move in by the end of the month

 

[justalayman]

Thanks for your time and it is well appreciated ... Looks like we will have to re list the house since the buyer wanted to close and move in by the end of the month

wow, that escalated quickly.

I wouldn't expect it to necessarily be cleaned up before the end of the month but before killing the deal, I would get an attorney on the phone and ask how quickly this can be done. You aren't actually filing a quiet title action, which could be an entailed issue. You are simply filing to have the mortgage voided. One issue and hopefully all of the needed information available. Given it is December and due to the holidays it is effectively a short month but I would at least try before killing the deal.

 

[Adone]

wow, that escalated quickly.

I wouldn't expect it to necessarily be cleaned up before the end of the month but before killing the deal, I would get an attorney on the phone and ask how quickly this can be done. You aren't actually filing a quiet title action, which could be an entailed issue. You are simply filing to have the mortgage voided. One issue and hopefully all of the needed information available. Given it is December and due to the holidays it is effectively a short month but I would at least try before killing the deal.

Thanks again I really do appreciate the time you have given us here.
Anthony