More details to this question:
I recently paid off my mortgage seller financing and need paperwork to say house is clear of any debts/liens so I can sell it. Also, do I need to clear it with state of MD.
1 ANSWER
Assuming your private lender recorded the mortgage in the land record office of the county where the property is located, you must make certain that a release of that mortgage (or deed of trust) is filed so the world will know that you don't owe the money any more. Nightmares happen when the person to whom you owed the money dies, and no one can be sure that you really paid off the debt. Then you have to go to court and convince a judge you don't owe the money. Better to be extra careful and get a release and get it recorded immediately after you pay off any debt secured by land.
Answered on Jun 27th, 2016 at 8:45 PM