Mortgage discharge paper never filed with registry – loan paid off in 2001, mortgage company & bank out of business- how do I clear my deed?

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Mortgage discharge paper never filed with registry – loan paid off in 2001, mortgage company & bank out of business- how do I clear my deed?

Asked on June 3, 2009 under Real Estate Law, Massachusetts

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Ahh, what you have is actually quite a common problem.  Every state has a statute concerning this -- usually requires a simple document to be filed. 

Let me see if this will help you (see the hyperlinks first):

http://www.mass.gov/legis/laws/mgl/183-54c.htm

http://www.mass.gov/legis/laws/mgl/183-55.htm

 

 

 

Chapter 183: Section 54. Definitions; method of discharge

 

[Text of section applicable as provided by 2006, 63, Sec. 8.]

 

Section 54. (a) For the purposes of sections 54 to 55, inclusive, the following words, unless the context otherwise requires, shall have the following meanings:—

“Authorized person”, a person authorized to act on behalf of another person by a written document signed by the person on whose behalf the person authorized thereby is acting. A photocopy, facsimile or scanned image of such document accompanying a request, demand or notice pursuant to sections 54 to 55, inclusive, may be relied upon by any recipient thereof acting in good faith.

“Bank confirmation of wire transmission”, for wired funds, a written confirmation of the same issued by the bank or other institution transmitting payment, including a written print-out by facsimile or other electronic transmission, that recites the beneficiary account number and other payee information prescribed in a payoff statement.

“Discharge”, a duly executed and acknowledged deed of release of a mortgage or other written instrument that, by its terms, discharges or releases a mortgage or the lien thereof or acknowledges payment or satisfaction of a mortgage or the debt or obligation secured by a mortgage or the conditions therein contained, or, in the case of a partial release, a duly executed and acknowledged instrument that, by its terms, discharges or releases a mortgage or the lien thereof from less than all of the property encumbered by the mortgage.

“Mortgagee”, the holder of record of a mortgage; but, if the mortgage was properly assigned of record, mortgagee shall mean the last person to whom the mortgage was so assigned.

“Mortgage servicer”, the last person servicing a mortgage loan who is required under section 54D to provide a payoff statement with respect to the mortgage loan, whether or not appearing of record as the mortgagee.

“Mortgagor”, a grantor of a mortgage, the grantor’s heirs, successors or assigns, or any other person who is an obligor of a note or other obligation secured by a mortgage.

“Note holder”, the holder of a note evidencing a debt or any other obligation secured by a mortgage; but, if the note holder is not the holder of record of the mortgage, the note shall contain the appropriate endorsements evidencing the transfer of ownership thereof to said holder.

“Payoff statement”, a statement in writing, including a written print-out by facsimile or other electronic transmission, issued at the request of the mortgagor or an authorized person on his behalf by a mortgagee, mortgage servicer or note holder indicating the amount of the unpaid balance of the mortgage loan, including principal, interest and other charges assessed pursuant to the mortgage loan, which may include the interest on a per diem basis with respect to the unpaid principal balance of the mortgage. A payoff statement shall include, where the context permits, a statement provided to the mortgagor or an authorized person on his behalf by a mortgagee, mortgage servicer or note holder, indicating the amount of the unpaid balance of the mortgage loan or other obligation that must be paid in order to issue a partial release of a mortgage.

“Person”, an individual, corporation, limited liability company, business trust, testamentary trust, partnership, association, joint venture, government, governmental subdivision or agency or other legal entity.

“Recordation”, “recording” or “ recorded”, a recording with the registry of deeds in accordance with this chapter, or registration with the registry district of the land court in accordance with chapter 185.

“Recording information”, the date of recording or filing of an instrument or document at a registry of deeds or registry district of the land court, and the applicable book number and page number, or the land court document number, as assigned by the register of deeds or assistant recorder of the land court.

“Servicing”, the receipt by a mortgage servicer of scheduled periodic payments and payoff monies from a mortgagor on a mortgage loan, and the allocation of the payments to principal, interest, municipal real estate taxes and other appropriate assessments and charges, all pursuant to the terms of the loan.

(b) A mortgage may be discharged by 1 of 2 or more joint holders of a mortgage or the mortgagee, mortgage servicer or note holder, or an heir, executor, administrator, successor or assignee thereof, but, the discharge shall comply with the requirements of subsection (b) of section 55. The discharge shall have the same effect as a deed of release, and may be recorded when duly executed and acknowledged or on proof of its execution in accordance with sections 34 to 41, inclusive, or on such other proof of its due execution by credible evidence in the form of corroborating documents or affidavits establishing the authenticity of the discharge and the execution thereof and, in that case, the discharge and the corroborating documents or affidavits may be recorded along with or as exhibits to an affidavit under section 5B that refers to the documents or affidavits. The recordation of a duly executed and acknowledged or proven discharge as provided herein shall be conclusive evidence that the mortgage has been discharged, notwithstanding the fact that the party signing the instrument may have assigned the note or other evidence of debt to another party, unless the assignment had been duly recorded before the instrument discharging the mortgage. If a discharge is executed by a person who is not the holder of record at the time the discharge is recorded, the recorded discharge shall become conclusive when an assignment of mortgage from the then record holder or holders to that person is thereafter recorded. A discharge shall contain the street address of the mortgaged property, the book number and page number or the land court document number and recording date of the mortgage, and the name of the original mortgagor; but, the failure to include the information shall not affect the validity of the instrument. This section shall apply notwithstanding section 3-116 of chapter 106.

 

Chapter 183: Section 54B. Mortgage release, assignment, etc.; execution before officer entitled to acknowledge instruments; effect

 

[Text of section applicable as provided by 2006, 63, Sec. 8.]

 

Section 54B. A deed of release or written acknowledgment of payment or satisfaction of the debt thereby secured, or a release, partial release or assignment of mortgage, or an instrument of subordination, non-disturbance, recognition, or attornment by the holder of a mortgage, or a power of attorney for the purpose of foreclosing a mortgage held by any such holder and executing any instrument necessary for that purpose, executed before a notary public, justice of the peace or other officer entitled by law to acknowledge instruments, whether executed within or without the commonwealth, by a person purporting to hold the position of president, vice president, treasurer, clerk, secretary, cashier, loan representative, principal, investment, mortgage or other officer, agent, asset manager, or other similar office or position, including assistant to any such office or position, of the entity holding record title thereto on behalf of such entity acting in its own capacity or as a general partner or co-venturer of the entity holding record title, shall be binding upon such entity and shall be entitled to be recorded or filed, and no vote of the entity affirming such authority shall be required to permit recording of filing.

 

 


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