Shakopee, MN asked in Contracts, Real Estate Law and Banking for Minnesota

Q: What is the likelihood of Obtaining a Lein Release with a remaining balance after Mortgage Company goes out of business?

I took out a 2nd mortgage in September of 2007 with Beneficial Loan and Trust. Shortly after this, they went out of business. I tried to make payments and contact them, but my payments were returned and was never able to get a hold of anyone. I waited for documentation of transfer, assumption, etc, but nothing ever came. It's now been 16 years, I am trying to refinance and this mortgage is still on the title. Is there anything I can do other than request a Lien Release? I did finally track down that HSBC was (is) the parent company, but because the statute of limitations is up on this debt, if they won't release the lien, is there anything else they can do other than request payment ? Is there anything else I can do to force a lien release? To date I have received nothing from HSBC.

1 Lawyer Answer
Anthony M. Avery
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A: More than likely the best course to take is to hire competent MN attorney to file a Quiet Title Action. Lapse of the SOL should be a strong argument that the Mortgage/Deed of Trust should not remain against the real property. You are asking the Court to declare the Lien released.

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