original mortg sold but no deed release? (mortgage companies, mortgages, offer)

[bobel]

I have been told the original holder of my mortgage never sent a release to city hall or it wasnt filed. That was 4 mortgage companies ago. They are out of buisiness. The loan doesnt show on my credit report. I have an offer on my place now. Does anyone have experience with this? is this going to be a nightmare to get the title clear for the sale???

[DMenscha]

Lenders only record a satisfaction of mortgage when the payoff amount is paid in full.

Lenders also sell or trade mortgages inside the industry. It's not entirely clear from your post whether you have paid off the mortgage or whether of the 4 mortgage companies you have been sending payments to, which one is out of business.

You should be able to get a preliminary title report quickly from the title company. If you haven't had a reconveyance deed issued, the laws which vary state by state will dictate how the transaction is to be handled. The Title officer can help you.

[pghquest]

Originally Posted by bobel

I have been told the original holder of my mortgage never sent a release to city hall or it wasnt filed. That was 4 mortgage companies ago. They are out of buisiness. The loan doesnt show on my credit report. I have an offer on my place now. Does anyone have experience with this? is this going to be a nightmare to get the title clear for the sale???

I wouldnt worry about it to much. Title companies get paid to clear these up, and the buyers pay title insurance. I understand the concern, but I would just proceed and let the title company do their job.