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I noticed on my HUD-1 Settlement Statement that there is a $35.00 charge for “reQuire release tracking.” What is reQuire?

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reQuireUnbeknownst to most homeowners is that our country has experienced a huge problem with lenders failing to release or satisfy mortgages, home equity lines of credit, and UCC-1 Financing Statements. Under the provisions of Code of Alabama, Section 35-10-30 , a lender has 30 days following the receipt of a payoff and a written demand to satisfy the mortgage. Unfortunately, many lenders fail to properly record these releases or they mail them to the customer/borrower for recording, and few customers understand that the Release and Satisfaction must be recorded in order to clear the mortgage from their title. Under the law, it is the responsibility of the lender to satisfy the mortgage and NOT the homeowner/borrower, but it is very common for lenders to mail Releases to borrowers.

According to statistics, 30% of all paid off mortgages are not satisfied of record. In our area, Alabama, we experience a considerably larger percentage than this when unsatisfied home equity lines of credit are considered. Equity lines are secured by mortgages, just like your first mortgage. From the closing attorney’s perspective, this is a very serious problem for buyers, sellers, and lenders intending to loan money to borrowers for purchases and refinances, because until all prior mortgages are satisfied of record in the Probate Records, another lender will be unable to loan money on your property. In other words, you will be unable to close on a sale or to refinance until all prior unreleased mortgages are satisfied of record.


Locating a person who has the authority to satisfy a paid off mortgage, if the company can even be found, takes a great deal of time and effort, and is extremely frustrating. Try navigating through an answering directory for this one! Even though Alabama law provides that a lender failing to satisfy a mortgage within the 30 day period identified in the statute is supposed to pay a $1,000 penalty, this writer has NEVER heard of this penalty ever being collected. Thankfully, this writer attended an underwriting seminar sponsored by one of its title insurance companies and was introduced to reQuire. reQuire is an efficient, cost effective alternative to the old laborious, inefficient, costly and stressful practice of lien release management. reQuire's Team does the job that nobody wants to do and does it for the very minimal charge of only $35.00.

According to its website, “reQuire Release Tracking was founded in 2002 to solve the mortgage lien release issue plaguing the settlement services and title industry. Since then, it has transformed the post-closing process via its Release Tracking Service, a web-based system that allows attorneys, settlement agents, and title companies to track, report, and obtain real estate mortgage lien releases quickly, easily and inexpensively. Now celebrating 10 years, reQuire tracks releases in all 50 states, the Virgin Islands, and the District of Columbia. In 2011, reQuire was ranked on Inc. Magazine’s List of Fastest-Growing Private Companies, the same year more than 200,000 transactions were added to our database. Today … thousands of agents, attorneys and underwriters … enjoy lower costs, streamlined operations and improved customer service that only reQuire can provide.” http://www.titletracking.com/

We at J. Calvin McBride & Associates, P.C. have used reQuire for several years and reQuire has been a lifesaver. By using reQuire, every buyer, seller, borrower, and lender can rest peacefully knowing that there will be no unsatisfied mortgage out there which might come back later to cause legal issues for them. We highly recommend reQuire.

 


From our offices in Decatur, Alabama, we represent clients in Morgan, Madison, Cullman, Lawrence, and Limestone Counties, including the communities of Decatur, Huntsville, Madison, Hartselle, Cullman, and Athens.

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