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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 12209
Experience:  JD, MBA
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MY GMAC mortgage on a condo was paid off in December 2010 by

Customer Question

MY GMAC mortgage on a condo was paid off in December 2010 by refinancing through my credit union. The credit union mortgage was paid off in full in June 2014 and the discharge was filed with the county's register of deeds. Now in June 2016 we are preparing to sell the condo. The title company has informed me that GMAC did not file the discharge (or there is no record)with the county, although I have a letter from GMAC stating that it was paid in full. The GMAC mortgage, being paid off in 2010, was not assumed by Ocwen in 2013. How can I get a discharge of loan from a company that does not exist? Or how can I convince the title company that the title is now clear?
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: This is in Michigan (Macomb County).
JA: Have you consulted a lawyer yet?
Customer: My attorney did amend our trust in 2014 when we were given what we thought was a clear title by the credit union. I am aware of quiet title, but it seems useless to file against an entity that does not exist -- GMAC Mortgage
JA: Is there anything else the Bankruptcy Lawyer should be aware of?
Customer: We have a cash buyer and the closing was scheduled for next Friday.
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Bankruptcy Lawyer about your situation and then connect you two.
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  TJ, Esq. replied 1 year ago.

Hello and thank you for the opportunity to assist you. My name is ***** ***** I will do my very best to answer your legal questions.

You can theoretically file a quiet title action even though GMAC Mortgage no longer exists. It was taken over by Ally. But putting that aside, the easiest way to deal with this would be to contact Ally and ask if it will file a release. If not, then the next step would be to contact your own title insurance company from when you refinanced. The lender, at the least, would have obtained title insurance. If so, then that title insurance company would likely provide an indemnification letter, which states that in the event that GMAC (or its successor) were to ever claim that it has a lien on the property, then the title insurance company will guarantee payment. Indemnification letters are quite common, and this situation is (unfortunately) quite common.

But if that doesn't work, then you should file a lawsuit against GMAC and its successor to quiet the title.

Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied.

Expert:  TJ, Esq. replied 1 year ago.

Hello again. I didn't hear back from you, so I'm just checking in to make sure that you don't need more help on this issue. If not, then please remember to provide a positive rating (and note that your positive rating is the only way that I'll get credit for helping you, so I greatly appreciate it). Thank you!