recording successfully stripped mortgage

[wabkatty]

Silly question... upon completion of a plan with a successfully stripped mortgage, is it the creditor's responsibility to record the release of the lien? Alternatively, does the debtor's recording of the order stripping the lien along with the discharge order serve as sufficient notice to other parties that the lien was in fact stripped?

[justbroke]

Yes, it's the responsibility of the lienholder to record a satisfaction of mortgage. In some Districts, the order stripping the lien is recordable, but probably not in a recordable format.

If you have trouble, I'd re-open the case to force the lienholder to record the satisfaction of lien. The satisfaction should be recorded within 30 days after discharge.

[wabkatty]

Thanks so much!!

[LadyInTheRed]

Here's how it works in Northern CA:

7. Standard-form Orders. If the court determines that a motion to strip lien should be granted, the court will employ the standard-form ORDER VALUING LIEN OF [NAME OF LIENHOLDER], attached hereto as Appendix A. If the debtor’s plan is confirmed and completed and debtor receives a discharge, on request of the Debtor the court will enter the standard-form JUDGMENT VOIDING LIEN OF [NAME OF LIENHOLDER], attached hereto as Appendix B, after 10 days notice to the affected lienholder and opportunity for a hearing. If the debtor’s chapter 11 or chapter 13 case is dismissed or converted before debtor receives a discharge, on request of the “stripped” lienholder or other party in interest, the court will enter the standard-form ORDER RESTORING LIEN OF [NAME OF LIENHOLDER], attached hereto as Appendix C, after 10 days notice to debtor and opportunity for a hearing. NOTE: The standard-form orders attached contain language typically used to identify real property collateral. Where the motion concerns personal property, the debtor should complete the standard-form order with a description appropriate to the type of collateral (e.g., for vehicle, use manufacturer, model, year, and vehicle identification number).

Source: http://www.canb.uscourts.gov/procedu...-cases-and-cha

The debtor would record the Judgment Voiding Lien with the County Recorder.

You might want to check your court's website to see if there is any guidance.

[LadyInTheRed]

wabkatty, I just noticed your name indicates you are a BK attorney in WA. Posting here seems like an odd way for you to figure out how to represent your clients. If you don't have experience with a particular issue and your research doesn't answer your questions, don't you have a mentor or peer group you can turn to?

[justbroke]

California is much more organized than Florida.

[walkthaplank]

California is much more organized than Florida.

They're pretty much rubber stamped as long as all of the paperwork is there. In the Central District they have another silly requirement that the appraiser include a declaration stating that he is a licensed appraiser and that he appraised the house... you know separate from the actual appraisal that says that he is a licensed appraiser and he appraised the house It was a new requirement which actually got my first filing dismissed because it was missing.

[LadyInTheRed]

They're pretty much rubber stamped as long as all of the paperwork is there. In the Central District they have another silly requirement that the appraiser include a declaration stating that he is a licensed appraiser and that he appraised the house... you know separate from the actual appraisal that says that he is a licensed appraiser and he appraised the house It was a new requirement which actually got my first filing dismissed because it was missing.

That's crazy! Northern District is apparently much more lax. My attorney is going to use Zillow for the value, combined with 1/1/09 assessed value from when my county lowered assessments across the board for residences purchased after a certain date. He's sure that's enough, maybe because of how underwater the 1st is. But I've decided to prepared to get an appraisal, just in case.