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  1. #1

    Default What to Do About Deed Lien from Inactive Bank

    My question involves real estate located in the State of: Missouri

    This may be a bit confusing, but I'll try to explain as thoroughly as possible.


    Three years ago my father passed away. He had owned two separate properties, a small 1ac lot, and a 3ac lot that he lived on. His intentions, as anyone who knew him could attest too was for my sister to get the small lot, and I to get the larger lot when he passed.

    Unfortunately he passed without any type of will or legal agreement. Aside from the land he owned virtually nothing of value so there was no probate. I immediately retrieved the property records from the county courthouse, and found out that his ex-wife (my sister's mother) was also named on the deeds.

    Thinking she would be able to just transfer the properties to each of us, she contacted the local title company. They said that there was a lien on both properties from the late 80's, from a local bank. I did research and found out that the bank was absorbed in 1983, to a bank that was absorbed in 1992, etc, etc, etc.

    So that brings us to the current bank, who I contacted. They have ZERO record of any liens on the properties, and ZERO records from the original bank in fact.


    So where do we go from here? The properties have liens that no longer exist, so how can we transfer them?

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: What to Do About Deed Lien from Inactive Bank

    The simplest way;
    ask the last of the successor banks to give you a release of the lien.


    If not successful there: quiet title suit.

  3. #3

    Default Re: What to Do About Deed Lien from Inactive Bank

    Thanks for the information.

    We've already contacted the most recent successor bank, and they have no records of having ever absorbed the original bank, let alone the lien. So as far as they're concerned there's nothing for them to release.

    So it seems the best course would be for my fathers ex-wife to file a quite title suit, which would remove the lien?

    Not sure if it helps or hurts, my wife and I have lived on and paid the taxes for the larger of the two properties for the past 3 years.

    Also, would it be possible to get a lien release through the FDIC? The original bank is listed as "acquired with government assistance", but the loan that the lien was from was never paid in full.

  4. #4
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: What to Do About Deed Lien from Inactive Bank

    The successor bank can issue a statement that says they hold no lien on the properties, either in their name or as a successor to [bank whose name is on the lien]

    that would make your efforts easier.

  5. #5

    Default Re: What to Do About Deed Lien from Inactive Bank

    Quote Quoting jk
    View Post
    The successor bank can issue a statement that says they hold no lien on the properties, either in their name or as a successor to [bank whose name is on the lien]

    that would make your efforts easier.
    Thanks for the suggestion. I contacted them today, and without any record of the loan having been paid they were very hesitant to issue said statement. I'm supposed to receive a call from a manager in their loan department tomorrow, hopefully that will work out.

  6. #6
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: What to Do About Deed Lien from Inactive Bank

    I understand their statement but the bottom line is if they cannot support the lien with proof of a loan they should release the lien.

  7. #7

    Default Re: What to Do About Deed Lien from Inactive Bank

    Looks like it's time to lawyer up. I spent a few more hours on the phone today with the bank, and without a loan account number that they can lookup in their system they refuse to offer a statement claiming that they hold no liens. Basically they have no record of a lien, so they refuse to say they have no record of the lien. What a joke. Thanks for your help!

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