What can I do if an individual won’t release a paid in full mortgage on my property?

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We own an investment property. We obtained a loan from an individual 5 years ago to start our own business in which the individual used our investment property as collateral and filed a 2nd mortgage on it. We paid the 2nd mortgage off in full 9 months after obtaining the loan, and the individual refuses to file the release of mortgage, there are no other penalties owed to him etc. He is also the landlord on the commercial space we rent for our business, and he likes having the mortgage lien on the investment property as insurance he will get his rent every month. Rediculous! We are now trying to sell the investment property and he has caused us to lose one buyer because of the title issue, by some miracle we have another buyer, does anyone have any creative ideas other than a lawsuit in civil court? This guy is not a brainiac, but he does have a decent lawyer, everything he owns is in a trust and the mortgage was funded out of that trust. There just has to be a way to force this guy to do the right thing and stop using these mafia tactics to push us around. Help!

2 Comments
  1. Reply
    Othniel
    May 2, 2011 at 12:07 am

    You need to consult your attorney or take him to small claims court. I believe State Law says (at least in FL) that he has a limited time frame in which to give you the release of lien otherwise he is in violation of State Law.

  2. Reply
    shoredude2
    May 2, 2011 at 12:35 am

    There is a maximum amount of time that he has to file that, and I’m sure that over 4 years is too long in all states.

    Tell him that you would hate to have to get a lawyer involved to make things right. That should get the ball rolling. If it doesn’t contact your lawyer.

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