What releases do we need after paying off our loan?

Full question:

We fiananced fee simple absolute,real property through a local bank.We have a warranty deed with a vendors lein.At the fifth year when the baloon payment came due,we went to the same local bank and we were told we had to extend the loan,but when we did that same local bank changed it to local bank N.A. When the five years came up we paid the full loan off of around 42,000.We first recieved a release of deed of trust from local bank but that was it.We never recieved anything from the bank N.A. So what releases do we need and from who? How long after payoff do we have to figure all this out?

• Category: Real Property
• Subcategory: Mortgage Satisfaction
• Date: 04/07/2025
• State: Texas

Answer:

After paying off your mortgage, you should have received a release of lien to show that the mortgage is no longer a claim against your property. The release you received from the original bank may be sufficient, but you should also check if a release from the new bank (local bank N.A.) is necessary, especially if they hold any interest in the loan. If you're unsure, consult a local attorney who can examine your documents and provide guidance.

You can also check with the county recorder's office to see if the bank's name on the recorded lien has been updated. Typically, once a mortgage is paid in full, the lender must record a satisfaction of the mortgage to remove it as a lien on your property.

In Texas, if a mortgagee does not provide a release within sixty days of receiving payment, a title insurance company can issue an affidavit to serve as a release (see Tex. Prop. Code § 12.017). This affidavit must confirm that payment was received and that the mortgagee has not responded to requests for a release.

It's advisable to resolve these issues as soon as possible after the payoff to ensure clear title to your property.