Real Estate Law
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If the creditor didn't file a lien release once their debt was paid off, then they can be compelled to do so since they are creating an invalid encumbrance on the property title now. They are supposed to file a lien release within 30 days of the underlying debt being paid off.
With that said, you have a couple options... you could file a "quiet title" lawsuit against them to have a judge declare the lien invalid and dissolve it. Or you could take an easier route and have a local attorney send them a "demand letter" stating that if they don't file the release, you will sue them for "slander on title" to have it dissolved and hold them liable for all the legal costs associated with the lawsuit.
The burden is on the creditor to file the lien release, not on the debtor, once the debt is paid off.
If you sued the creditor for "slander on title" and defamation, you could recover the costs of whatever it cost to have the lien removed as well as any costs for repairing your credit by having the negative information removed from your credit report as inaccurate.
A quiet title suit is a lawsuit that an owner files to have a judge judicially determine their rights to their property and whether any encumbrances on the title are legitimate. But you would need a local real estate attorney to file this and you are likely looking at several thousand dollars. That is why I suggested the threatening letter from the attorney as a way to get the creditor to file a lien release as it is much simpler for them to do so rather than have to defend in court and incur the costs of doing so when they are clearly in the wrong here.