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Always when you buy a home and have a mortgage, your lender files a lien on your property but when people get the home paid for, many times they never file with the courthouse the lien is now paid off. When they die and their children are trying to find all their papers, they will have no idea where the piece of paper is, you got from your lender when the mortgage was paid in full.
Most of the time, the children or family members won't even know who your loan was with. Home Owners fail to file that very important piece of paper at the county courthouse. When a title co. runs a search, unless that has been filed, it will still show you have a lien and you can't sell the property or your family members can't sell it until that document is produced..So if your home is paid off and you have no lien, you must file the "release of lien" at the county courthouse for it to show "free & clear."
In summary: When you pay off a mortgage, the lender normally mails you your note, marked “paid,” and a “release of lien” document. That’s the document you’ll need when you sell your property, and it’s up to you to file it with the county. If you put it in a drawer somewhere, chances are it will never be found so the minute you get that release of lien, go immediately and get it filed at the courthouse.
