My Mortgage Company Won’t Discharge My Mortgage. What Can I Do?

Once you have paid off your mortgage in full, the mortgage company is under an obligation, at least in New York State, to discharge your mortgage within thirty days.  Unless you request otherwise, the mortgage company should present a satisfaction of mortgage to the county clerk’s office for recording within thirty days.

Your mortgage company is also required to give you a certificate of discharge within thirty days after your mortgage is paid off.  If they fail to do so, they will be liable to you for $500.  If they haven’t given you the certificate within sixty days, you are entitled to $1,000, and if not within ninety days, you can get $1,500.

If the mortgage company refuses to comply with these requirements, you may have to bring a lawsuit to compel them to discharge it.  You will need to make sure that you have evidence showing that your mortgage has been paid.  Before you bring a suit against the mortgage company, you should send them a written request, asking for the certificate of discharge.

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3. Mortgage Servicer refuses to speak with Debtor after bankruptcy!