AASHTO 2006 Clearinghouse Report

Mortgage Releases

The Delaware Department of Transportation requested a survey of the other states regarding:

Has your state enacted laws to make mortgage companies provide a release within a certain time frame?
Please provide information as far as how your legislation reads.

ALABAMA

This is an occasional problem for us but we do not have a law that addresses it.

ARIZONA

The State of Arizona has Statutes that address the release of mortgages within a certain time frame.
Please refer to the following website: http://www.azleg.state.az.us/. Under General Information, click on "State Statutes", then proceed to Title 33 (Property) and refer to

ARS 33-707 and ARS 33-712.

ARKANSAS

No. However, the time required to obtain a partial release is a problem, especially when the larger, out of state mortgage companies are involved.
N/A

CALIFORNIA

With regard to Full Take acquisitions, mortgagee(s)/beneficiaries do have a 30 day time frame from the date the mortgage has been satisfied (paid), and to have a full reconveyance executed. More details regarding these time frames can be found in section 2941 and 2943 of the Civil Code.

Please refer to the link below. On partial acquisitions, I don't believe there is any such requirement in California, as such this is one of the main reasons our escrows get delayed on partial acquisitions as it sometimes takes a while to get the reconveyance as sometimes the lenders are putting a demand on the entire amount offered, and they may not be entitled to it.

As you know, they should not put a demand on the amount which we consider "curable damages" as this money is offered to the property owner to cure damages, and restore the collateral for their loan.

http://www.leginfo.ca.gov/cgi-bin/calawquery?codesection=civ&codebody=2941&hits=20

COLORADO

Not that I'm aware of at this time, though any legislation that may expedite that process would certainly be well received by CDOT.

CONNECTICUT

The State of Connecticut has not enacted such a law. I would be very interested to see your proposal as well as laws the other states have pertaining to the matter.
N/A

FLORIDA

Yes (See Section 701.04, Florida Statutes) text follows.
Florida's legislation reads:
701.04 Cancellation of mortgages, liens, and judgments.--
1. Within 14 days after receipt of the written request of a mortgagor, the holder of a mortgage shall deliver to the mortgagor at a place designated in the written request an estoppel letter setting forth the unpaid principal balance, interest due, and the per diem rate. Whenever the amount of money due on any mortgage, lien, or judgment shall be fully paid to the person or party entitled to the payment thereof, the mortgagee, creditor, or assignee, or the attorney of record in the case of a judgment, to whom such payment shall have been made, shall execute in writing an instrument acknowledging satisfaction of said mortgage, lien, or judgment and have the same acknowledged, or proven, and duly entered of record in the book provided by law for such purposes in the proper county. Within 60 days of the date of receipt of the full payment of the mortgage, lien, or judgment, the person required to acknowledge satisfaction of the mortgage, lien, or judgment shall send or cause to be sent the recorded satisfaction to the person who has made the full payment. In the case of a civil action arising out of the provisions of this section, the prevailing party shall be entitled to attorney's fees and costs.
2. Whenever a writ of execution has been issued, docketed, and indexed with a sheriff and the judgment upon which it was issued has been fully paid, it shall be the responsibility of the party receiving payment to request, in writing, addressed to the sheriff, return of the writ of execution as fully satisfied.

ILLINOIS

Illinois does not have laws regulating the timing of mortgage releases.

INDIANA

Mortgagee must record releases (Indiana Code 32-28-1-1), although no time frame set to record said releases, unless by written request from the mortgagor, after payment in full. Once written request is received by mortgagee via certified mail, the mortgagee has 15 days from date of receipt of request, to record the release (Indiana Code 32-28-1-2). If a mortgagee fails to record a release after paid in full, the mortgage will expire 10 years after date of last installment due, as shown on mortgage. If mortgage does not show a final installment date, then the mortgage will expire 20 years after the date the mortgage was executed.
See above for Indiana Code cites

KENTUCKY

Kentucky does not have such a law.

LOUISIANNA

Louisiana has no laws addressing time frames for mortgage releases.

MARYLAND

Maryland has no legislation regarding time frames for Mortgage Releases.

MICHIGAN

Yes.
Please provide information as far as how your legislation reads. See attached Michigan Public Act(s).

MINNESOTA

Yes, Minnesota Statutes Section 507.41
507.41 Penalty for failure to discharge.

When any mortgagee, mortgagee's personal representative or assignee, upon full performance of the conditions of the mortgage, shall fail to discharge the same within ten days after being thereto requested and after tender of the mortgagee's reasonable charges therefore, that mortgagee shall be liable to the mortgagor, the mortgagor's heirs or assigns, for all actual damages thereby occasioned; and a claim for such damages may be asserted in an action for discharge of the mortgage. If the defendant be not a resident of the state, such action may be maintained upon the expiration of 60 days after the conditions of the mortgage have been performed, without such previous request or tender.

HIST: (8235) RL s 3364; 1986 c 444

MISSOURI

The web link below will confirm that Missouri requires mortgage release within 30 days, and provides the language you desire.

http://www.moga.state.mo.us/statutes/C400-499/4430000170.HTM

MONTANA

After consulting with our legal staff, it doesn't appear that Montana has any laws to make mortgage companies provide a release of mortgage within a certain time period. On parcels that were turned over for condemnation, where the mortgage company is refusing to execute a release, the mortgage company is simply named in the lawsuit along with the landowner and their interest is cleared through the condemnation action. On all other parcels, we just have to work on the mortgage company's time frame in getting releases executed.

NEBRASKA

No.

NEW HAMPSHIRE

Sorry, no such legislation in NH.

NEW JERSEY

New Jersey has no such legislation of which I am aware.

NORTH DAKOTA

North Dakota has not enacted laws to make mortgage companies provide a release within a certain time frame.

PENNSYLVANIA

Answer to question number 1 is No.

SOUTH CAROLINA

South Carolina has no legislation requiring a mortgage company to provide a release.

SOUTH DAKOTA

No. South Dakota has not enacted laws to make mortgage companies provide a release within a certain time frame.

UTAH

Utah has no law in place to require a release within a certain period of time.

WISCONSIN

Wisconsin's response is "no".