A mortgage satisfaction letter is a written notice a borrower receives from their lender when their home loan is paid off. Once lenders record the satisfaction of mortgage with the appropriate county, the lien on the property is released. But what happens if you receive a mortgage satisfaction letter in error and, honestly believing your loan is paid off, you stop making mortgage payments? Or what if you have made the final payment on your loan, but your lender does not record your mortgage satisfaction as required by law and still has a lien against your property?
These serious errors by mortgage companies can have far-reaching impacts. You could find yourself having to come up with a large amount of money to catch up on mortgage payments, or even being threatened with foreclosure. You could encounter problems trying to sell your home if there is still a lien against the title. In either case, it isn’t fair that homeowners should have to pay for the mistakes made by mortgage lenders. If you are facing either of these complex situations because of an error by your lender, considering getting the help of an experienced real estate attorney who can explain the recourse you have and guide you toward resolving the problem.
Contact Florida Attorney Carlos M. Amor When You Need Experienced Legal Help
Carlos M. Amor is a skillful real estate lawyer in Florida who is well-versed in representing clients in issues related to erroneous mortgage satisfaction letters, problems with lien releases and other mortgage errors. To arrange a consultation, call him at (954) 453-7200. For your convenience, Carlos M. Amor offers free consults, by phone, via video meeting or in person.
What Recourse Do I Have If My Lender Said My Mortgage Was Satisfied But is Now Demanding Payment?
If your lender erroneously informs you in a mortgage satisfaction letter that your home loan is paid off and you stop making payments, you can find yourself in grave financial trouble when the mistake is discovered. Even if a lender has recorded your mortgage as satisfied in the public records, if they discover they did so in error, they may be able to simply correct the record with the county and it will show there is still a lien on the property.
You could receive notices of non-payment and demands that you quickly catch up on the payments you missed. The amount you owe in order to become current on payments can be staggering, depending upon how long you have believed your mortgage was satisfied. If you cannot come up with the money, the bank may threaten foreclosure. So, what recourse do you have so you don’t lose your home due to the bank’s error?
There are several steps you can take to try to resolve the problem. You can start by notifying the mortgage company in writing of their mistake. This type of communication is called a Notice of Error. The lender has a finite amount of time to respond. They must acknowledge your communication within five days, although it may take them up to 30 days to inform you about how they will address the problem.
If foreclosure is a possibility on your property, the lender typically must respond before a foreclosure sale. Under federal consumer protection laws, banks usually cannot begin foreclosure proceedings until payments have been missed for 120 days. During this time period they must also inform borrowers about possible ways to keep their home, such as repayment plans and loan modifications.
If you don’t get a response back from the mortgage company in a timely way, or if the mortgage company is unwilling to work out a satisfactory resolution with you in light of their error, do not wait to get legal help from a knowledgeable foreclosure attorney. In fact, as soon as you learn of the mortgage satisfaction error is a good time to consult with a lawyer who can help you prepare the notice of error communications and otherwise advise you. These types of cases are very complex and often require the assistance of legal counselors with in-depth understanding of real estate and foreclosure law in Florida.
Why Work with Plantation Attorney Carlos M. Amor?
Plantation attorney Carlos M. Amor has years of legal practice in the Florida real estate market. He is also a licensed real estate broker. He can review all the documentation related to your mortgage, including your mortgage agreement, statements and the erroneous mortgage satisfaction letter and communicate with the bank on your behalf. He will seek a fair solution with the lender that allows you to catch up on the payments you owe and keep your home.
What If I Paid Off My Loan But the Lender Has Not Recorded My Satisfaction of Mortgage With the County?
While lenders sometimes send mortgage satisfaction letters in error, they may also fail to officially record when mortgages are satisfied, which can cause other kinds of problems for homeowners. Under Florida Statute 701.04(2), mortgage companies are required to do the following once they receive final payment on a loan:
- File a written and notarized satisfaction of mortgage document with the clerk in the county where the property is located. This document will be entered into the official records of the county. It releases the lien that the mortgage company has on the property.
- Send a mortgage satisfaction letter informing the property owner that the release has been recorded with the county clerk and there is no longer a lien on the property from the lender. The mortgage company has 60 days under the law from the time the final loan payment was made to complete this step. If they fail to do so, they can be held accountable under the law.
If through an error, a mortgage company does not officially record the mortgage release or properly inform the homeowner that their loan is satisfied, the property will still show a bank lien against it in public records. This can cause serious title problems down the road should the owner wish to sell, or for beneficiaries if the owner should pass away.
If you have paid off your mortgage loan and your lender has not taken the steps as required by Florida law to release the property, you have legal recourse. You can request that the lender have the mortgage satisfaction document recorded. If the lender does not adequately respond to your request, you may be able to file a civil lawsuit to have the filing of the mortgage release enforced by the court.
Attorney Carlos M. Amor Effectively Takes on Mortgage Lenders
Attorney Carlos M. Amor can advise you about bringing a civil lawsuit in court if your lender is denying their mistake and does not release their claim on your property. If you must go this route, you may be entitled to attorney’s fees and costs under the Florida statute.
As a real estate attorney with years of experience taking on mortgage lenders for legal clients, Attorney Carlos M. Amor understands how these companies operate. You can trust him to provide you with knowledgeable guidance. When you have reached the very exciting milestone of paying off your mortgage and owning your home outright (barring other encumbrances), you should not have to put up with a careless blunder from your lender in not recording the mortgage satisfaction.
Contact a committed real estate attorney today to schedule a consultation by calling (954) 453-7200. Attorney Amor offers free consults, by phone, via video meeting or in person.
Get Help from an Experienced Real Estate and Foreclosure Lawyer in Florida
Plantation Attorney Carlos M. Amor Works Hard to Protect His Clients’ Property Interests
Mortgage lenders are not immune to making mistakes. But when they do, homebuyers should not have to suffer the serious consequences. Unfortunately, however, it often takes an attorney with knowledge of Florida and federal laws pertaining to real estate and lending to get mortgage companies to fairly resolve the issues their errors have caused.
If your bank sent you an official mortgage satisfaction letter erroneously telling you that your mortgage was paid off and you sincerely believed them and stopped making payments, Attorney Carlos M. Amor will work hard to try and negotiate or litigate a satisfactory solution, even if foreclosure proceedings have already begun. If your lender failed to record satisfaction of mortgage documentation with the county where your home or other property is located and you have completed your loan obligation, Attorney Carlos M. Amor can represent your interests in having the mortgage lender’s claim on your property released, up to and including filing a civil claim asking the court to enforce the release of the lien.
In either case, you should not wait to get skilled legal help from an effective attorney with a track record of success in real estate cases. Call Carlos M. Amor at (954) 453-7200 today to arrange a consultation. Attorney Amor offers free consults, by phone, via video meeting or in person.