Release of Lien
A lien is a legal claim against property as security for payment of an obligation. A release from liability is typically provided by the lender of the original loan.
Customers may receive requests for a release of lien to verify:
- Release from liability for repayment of a loan, common in transactions involving an assumable mortgage
- If the customer uses a trade of one of a current property for down payment on a loan. (When a lien is present on the property being traded, an assumption of mortgage can release the applicant from liability to repay the note.)
- That an old second mortgage has been paid in full (if the security instrument of that loan is still in full force against the subject property)
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