US Legal Forms
Legal Resources
Questions & Answers
Real Property
Can the bank hold my money in escrow because of satisfaction

Can the bank hold my money in escrow because of satisfaction

Q: What happens to the escrow balance when a mortgage is paid off?

When a mortgage is paid off, any remaining escrow balance should be returned to the borrower. The lender typically processes this refund after confirming that the mortgage is satisfied. If the escrow balance is not returned, the borrower should contact the lender to resolve the issue.

Q: What does it mean when a mortgage is unsatisfied?

An unsatisfied mortgage means that the mortgage has not been paid off or that a satisfaction letter has not been recorded. This can lead to complications in property transactions, as the mortgage remains a lien on the property. It is important to obtain a satisfaction letter to clear the title.

Q: What happens if the mortgagee fails to acknowledge satisfaction of the mortgage within sixty days of request or demand?

If the mortgagee fails to acknowledge satisfaction of the mortgage within sixty days, the borrower may have legal recourse. Some states allow borrowers to file a petition to compel the mortgagee to record the satisfaction. It is advisable to consult with a local attorney to understand the specific laws and options available.

Q: How long does a bank have to record a satisfaction of mortgage?

The time frame for a bank to record a satisfaction of mortgage varies by state. Generally, banks are required to record the satisfaction within a reasonable time after the mortgage is paid off, often within 30 to 60 days. If they fail to do so, the borrower may have legal options to compel the recording.

Full question:

My home was paid off in 1986 , I did not receive a satisfaction, i sold my home sept. of 2007, they are holding $35,000.00 in escrow because they want a satisfaction of my payoff which I never received. The morgage company does not exist and I can not find out who took them over to see if I can get this satisfaction. I have a Tellers check from the bank proves that I paid it off sept 12 1986, but they want the satisfaction letter, can you advise me in this matter

Category: Real Property
Subcategory: Mortgage Satisfaction
Date: 04/07/2025
State: New York

Answer:

I am prohibited from giving legal advice. The statutes below makes it possible to receive statutory damages, however, there are statute of limitations applicable to bringing an action. Please see the article at the link below for a discussion of the applicable statutes of
limitations. I suggest you contact a local attorney who can review all the facts and documents involved.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What happens when no satisfaction of mortgage is recorded?

When no satisfaction of mortgage is recorded, the mortgage remains on public record as an active lien against the property. This can complicate future transactions, such as selling the property or obtaining new financing, as potential buyers or lenders may see the mortgage as still owed. It is important to address this issue to clear the title and avoid legal complications.

What happens when a mortgage is not recorded?

If a mortgage is not recorded, it may not be enforceable against third parties. This means that if the borrower sells the property, the buyer may not be aware of the mortgage obligation. However, the lender may still have rights against the borrower. Recording is essential to protect the lender's interests and inform the public of the mortgage.