How to get a lien on my property removed if the lender has since gone out of business?

I borrowed money to buy a home from my employer; after 2 years I paid the loan in full. This occurred 7 year ago. I wasn’t told that a lien had been placed on my home until this year when I began a refinancing process. The company has since gone out of business and my bank cannot locate the canceled check since it was written and cashed so long ago. How do I go about getting the lien released so I can refinance the home and eventually sell it?

Asked on March 10, 2012 under Real Estate Law, Colorado

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

There are two ways for you to remove the lien on your property where the lender has gone out of business where you want to refinance the property you own. The first is to post a bond regarding the loan. The second is to file a lawsuit for declaratory relief against the lender for a declaration that the loan has been paid off.

In any event, I suggest that you consult with a real estate attorney regarding methods to get the recorded lien on your property released.


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