How to Get a Mortgage Lien Release?

My best friend had purchased her home 15 years prior and opted to pre-close her loan. For this, she talked to her credit officer and he advised her to remove the mortgage lien and acquire a no-objection certificate (NOC), in addition to gathering the original property papers. My best friend was unsure of how to get a mortgage lien release at first but came to understand that house loan closure should be carried out with the necessary care and attention to ensure that there are no difficulties in the long term and that the property is released from the lien. I will tell you how she released her mortgage lien in my answer.

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What is release of lien on mortgage?

Lien refers to a lender's legal claim to possession of a debtor's belongings until the debt is settled. A mortgage lien in a house loan gives your bank security and assurance against a loan because it allows it to seize the property's legal title if the debt defaults. You must pay your monthly responsibilities on time to avoid losing your home to foreclosure because your lender has a legitimate legal claim on it. The property becomes free and clear after the lien is released once you fulfil your repayment commitment.

Mortgage lien release process?

You must send a letter to the bank asking for the restoration of the original documents if you have made your last EMI or all remaining payments on your home loan.

The banks typically react to such communications in a minimum of seven business days. They will hand you back the crucial original paperwork and issue a letter of closure confirming that there are no unpaid debts owed on your property. The bank will not have any ownership stake in the property, according to the No Objection Certificate (NOC) it will provide.

You need to obtain a NOC from the registrar's office if the mortgage has already been recorded in order to have the lien released. Both the debtor and the bank representative must be present for this, therefore both parties must be present. The bank will restore your documentation in the unlikely event that the mortgage is not registered.

A lien is a formal agreement that is recorded with the Registrar's Office and prevents the property from being sold. For the property title to be clean, it is crucial to get any liens erased. A bank representative goes with you to the Registrar's Office to release the lien when your home loan is closed. It should be emphasised that until the lien is released, the property cannot be sold. Without releasing the property's lien, the administrative process of terminating the mortgage is not complete. Property title changes take about ten days to appear in the Registrar's accounts.

I hope now you too are aware of how to get a mortgage lien release.