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ted mullucey's Blog

Unreleased mortgages in Pennsylvania
by ted mullucey | 2013/08/12 |

 

ted mullucey's Blog ::

Abstractors, Title Examiners, and Underwriters in Pennsylvania, are there any provisions in the Pennsylvania statutes that address unreleased/unsatisfied mortgages? Most states provide limitations on how long a mortgage will encumber a property if it is "X" years after the stated maturity date. For example, Ohio states that the mortgage will cease to encumber a property if it is 21 years past the stated maturity date or 21 years from the execution date, if no maturity is stated. Anything similar to that in Pennsylvania? Any help would be appreciated.


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146 words | 1410 views | 2 comments | log in or register to post a comment


Excellent Question


That’s an excellent question, Ted.   I’m not aware of any law in PA that imposes a limit on how long an abandoned mortgage encumbers a property.  What I can tell you, however, is that in 2003, the state legislature enacted a new Mortgage Satisfaction Act which permits certain designated persons other than the mortgagee to enter satisfactions into the record. 

The MSA sets forth alternate methods of obtaining mortgage satisfactions in certain instances.   It permits what is known as a “Settlement Officer Satisfaction” and establishes a duty on the part of a mortgagee to record a satisfaction of mortgage within a certain time frame upon receipt of a demand for satisfaction. It also prescribes penalties for a mortgagee’s failure to timely record a satisfaction piece once the underlying obligation has been paid in full.

 
by Scott Perry | 2013/08/16 | log in or register to post a reply

Unreleased mortgages
Thanks Scott for the heads up. Many states have adopted similar laws but it fails to address the underlying issue that is plaguing the industry at this time; old mortgages that have not been satisfied. In the past lenders have simply ignore older, unreleased mortgages that appeared on a title report or commitment but with increased pressure from regulators to affirm a lenders lien position they are requiring curative title issues before making a new loan. We know that in the refi boom of the early 2000's issuing a satisfaction was not a priority or even a priority at all. Again, it is the consumer who is bearing the the reprecussions of a swing to the right of more regulatory oversight. A lender expects you to make your payments on time but they have no problem ignoring their responsibilities when you finally do pay off the mortgage. 
by ted mullucey | 2013/08/19 | log in or register to post a reply
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