THE BANK STILL HAS NOT RELEASED MY MORTGAGE, WHAT CAN I DO?

Unfortunately, this is an all too common question, especially when dealing with large banks or mortgage companies who have no local branches. If your loan on real estate has been paid off, Kentucky law states that the lien (mortgage in this case) must be released within thirty (30) days. If it is not, you must send the bank “written notice” that the mortgage needs to be released. While “written notice” is not further defined by the courts at this time, certified mail is your best bet. After receiving written notice, the bank has fifteen (15) more days to release the mortgage lien without incurring a penalty. However, on the 16^th day, the penalty is $100 per day for thirty (30) days and then $500 per day until the mortgage is released.

As one can imagine, this can add up quickly. In fact, our office alone has collected hundreds of thousands of dollars for clients this year alone. There are some things that you should be aware of when considering whether or not you have a claim against a bank. One, has the mortgage been released? (If so, you may not have a claim) Two, was the mortgage one for real estate? (Car loans, personal loans, etc. do not apply, only liens on real estate) Three, is my mortgage fully paid off? (There must be no further obligation owed by you in order for the bank or lienholder to release the lien) Four, have I provided written notice, which I can prove with the document? Remember, written notice triggers the time and penalties.

If the mortgage has not been released and the answers to questions two and three are yes, you need to send written notice. Your attorney can help you send proper written notice and we encourage you to engage an attorney from the beginning to protect your rights and cover all the bases as this is a complicated and precise law. Once the written notice is sent, the bank must release the mortgage within 15 days to avoid paying you a penalty. If you believe you may have a case, quickly contact us at 606-523-5100 or 877-524-5100 or by email at shane@copelandandromines.com

•••Please note that the law applies to any lienholder on real estate, not just banks. However, banks or mortgage companies are the most common lienholders on real estate•••