release a lien on a house.

[frank]

about 20 years ago I put up the money for my bil to buy a house and put a mortgage lien on it recorded at the courthouse. the lien is set to expire in another 6 months. I live in Iowa. Does anyone know what papers have to be filed to release the lien? I'm not very familiar with this procedure, having never done it before. When I filed the lien it was pretty basic. filled out the papers and recorded the lien. hopefully the release is just as simple. thanks

frank

 

[bingybear]

Talk with the people at the court house. It should be similar to what happened when you put it on.

 

[MissMolly]

You can use this as a template and prepare your own. They are pretty simple documents.

https://www.lawdepot.com/contracts/satisfaction-of-mortgage-form/index.aspx?loc=USIA&s=QSGeneralInfo&g=QGCustomization&

 

[pb4uski]

If it expires in 6 months then why not just let it expire rather than release it?

 

[MarieIG]

Satisfaction of Lien/ Satisfaction of Mortgage

Yes, it should be a relatively simple form. The form may vary depending upon your state.

 

[frank]

If it expires in 6 months then why not just let it expire rather than release it?

I would do like you say but I am sure the bil will want some kind of release or acknowledgement that it is paid off. I was thinking about making out the release form ,getting it signed and notarized, giving it to him and let him decide when he wants to record it.

 

[Senator]

If it expires in 6 months then why not just let it expire rather than release it?

When the house gets sold, the title company wants a lien release. I doubt that any title insurance company would insure against an 'expiration'. It would be an exception on the title insurance policy. Then, no market rate buyer with a mortgage would want it.

It would have to be a quiet title sale, or a cash deal. Therefore likely a lower price.

 

[pb4uski]

^^^ Interesting. I had never heard of a lien expiring... around here it is on until it is take off.

 

[Senator]

^^^ Interesting. I had never heard of a lien expiring... around here it is on until it is take off.

Me either. The only thing that I was thinking is that it was a 20-year amortization schedule, and the thinking was that the last payment date was the 'expiration' date.

Payments can be missed, late penalties added, terms can extended without recording the new terms, etc.

 

[Ginny]

This is serious business, hire a lawyer who does real estate or have an escrow company take care of the paperwork. It may not be as simple as it seems. When you or your heirs try to sell the house, it may be a big problem if not taken care of properly.

 

[RunningBum]

Talk with the people at the court house. It should be similar to what happened when you put it on.

+1. You and/or your bil should just call or go down to the court house to see exactly what you need, and follow though to make sure it takes effect.

 

[Lienlord]

Saw this question and had to share something I'm dealing with now. I hold a mortgage on a house that I sold to a couple. Well, the husband got into some legal trouble so they've asked me to take the house back for the balance on the mortgage and a little cash. I agreed and drew up the paperwork, but checked the title on the house and found it under a different name! I asked the couple who that name was, and they said it was the bondsman that posted the husband's bail! He made them sign a Quit Claim deed as collateral on the bail until the case is settled. I told them I couldn't buy the house until the the bond is released since now they don't have the legal right to sell it!
My fear is they'll just stop making payments and I have to foreclose. Not sure how that will work with title in bondsman's name?
Real Estate is Fun!!

 

[Senator]

Saw this question and had to share something I'm dealing with now. I hold a mortgage on a house that I sold to a couple. Well, the husband got into some legal trouble so they've asked me to take the house back for the balance on the mortgage and a little cash. I agreed and drew up the paperwork, but checked the title on the house and found it under a different name! I asked the couple who that name was, and they said it was the bondsman that posted the husband's bail! He made them sign a Quit Claim deed as collateral on the bail until the case is settled. I told them I couldn't buy the house until the the bond is released since now they don't have the legal right to sell it!
My fear is they'll just stop making payments and I have to foreclose. Not sure how that will work with title in bondsman's name?
Real Estate is Fun!!

Since the Bondsman is the second lienholder, he still needs to pay you to get the property 100% in his name. Or he needs to pay you when he sells, I assume the bondsman lien is a foreclosable lien.

If you sell, the bondsman needs to get paid. The Bondsman has taken the equity from you, if there is any.

In MN, it works like this, although most states should be similar. If you foreclose, and the bondsman doesn't buy the property at the foreclosure sale, or redeem the property and buy you out, the bondsman looses his equity. You get the foreclosed property.

If you are the second lien holder, behind a first mortgage that is foreclosing, and you want to keep your investment, you need to buy out the first mortgage.

My guess is that the people will not be paying the mortgage.

 

[Lienlord]

Since the Bondsman is the second lienholder, he still needs to pay you to get the property 100% in his name. Or he needs to pay you when he sells, I assume the bondsman lien is a foreclosable lien.

If you sell, the bondsman needs to get paid. The Bondsman has taken the equity from you, if there is any.

In MN, it works like this, although most states should be similar. If you foreclose, and the bondsman doesn't buy the property at the foreclosure sale, or redeem the property and buy you out, the bondsman looses his equity. You get the foreclosed property.

If you are the second lien holder, behind a first mortgage that is foreclosing, and you want to keep your investment, you need to buy out the first mortgage.

My guess is that the people will not be paying the mortgage.

Thanks Senator! I'm the first position lienholder, so you are correct about the foreclosure process. The husband's arraignment hearing is tomorrow (I'm going to attend) and his wife seems to think there's a plea agreement in place that will let him plead guilty to lesser charges for a suspended sentence and probation. If that happens, the judge should release the bond and the bondsman should release his lien, which would allow them to sign the deed over to me.

I'll keep you posted!