Bank of America has a lien on my house which I need to have released in order to sell the house.

Bank of America has a lien on my house which I need to have released in order to sell the house.
The lien is a mortgage, security for an SBA loan.

The last payment made was nearly twenty years age. The business failed leaving a balance on the loan. I never heard from the bank or the SBA.

The original loan was with Central Jersey Bank which became Nat. West Bank, then Fleet Bank and now Bank of America. The last payments were made to Fleet. The Mortgage currently is filed under Nat. west.

I don't have any of the original documents as they were lost in the scramble which resulted from the business failure.

I have spoken to a couple of attorneys and several people at B of A. No help at all.

Any suggestions would be greatly appreciated.
Robert asked this question 3 years ago
  • Bank of America • 1945 answers • 94% helpful

    Robert, liens as security for loans are generally not considered active until the property is sold and then the lien is used to recover those funds from the proceeds of the sale. Getting a lien released without some proof that the original loan was paid off may be a real challenge.
    First, a couple of questions -- you mention "the last payment" but did this, in fact, pay off the loan or was it simply the last payment you made?
    Did you own the house in question at the time you took out the original loan? If so, there should be papers reflecting the original agreement that lists the house as security. Have you requested the documents from the bank? Even during a transition from one bank to another, documentation on active accounts should have been provided to the "new" bank although, having gone through three transitions myself, I know this is not always the case.
    If the mortgage is not showing under Bank of America, have either of the attorneys been able to explain to you how the bank justifies having a lien on your property against a loan that they -- at least officially -- don't own?
    These points could very well be old news to you. If that is the case, the only option is to take this issue to the Office of the CEO Escalation Unit. They are a specially organized unit set up to handle customer issues and situations that standard operating procedures for other departments cannot find a solution for.
    Your inquiry must be written; there is no phone number to call.
    Mail it to the attention of:
    Office of the CEO Escalation Unit
    Bank of America Corporate Center
    100 North Tryon Street
    Charlotte, North Carolina 28255

    I know this is going to be a challenge for all concerned but I do wish you the best of luck in getting it resolved.
    1 comment
    • R
      The "last payment" was simply the last payment I made. The loan was not payed off. I did own the house at the time the loan was taken and had a first Mortgage. The security for the SBA loan is a second mortgage. I have not requested a copy of the loan agreement. I spoke to someone today who searched under the business name and found nothing. I will be speaking to another attorney shortly and will ask the question you posed. Thanks for the Office of the CEO Escalation Unit info.
  • 1706 answers • 88% helpful

    This expert is helping you out because there weren't many active Bank of America experts.

    Until and unless you pay off the loan, the lien cannot be removed. In order to eliminate a lien, somebody has to pay off the lien holder's claim to the property. This payoff typically must happen before you can sell your home, but a payoff is not always required.

    Partial Payoff:
    The lien creditor has the right to allow removal of the lien even if the creditor has not been fully paid off. This means the purchaser or seller of the property may be able to negotiate a partial payoff of the amount due the lien creditor in exchange for the lien creditor removing the lien from the property. Removal of the property lien does not necessarily fully satisfy the underlying obligation that provides the basis for the lien. Creditors may be enticed to remove property liens in exchange for partial payment and the right to pursue the remaining balance owed by other legal means, such as wage garnishment or bank account seizure.

    If you don't find any other option to fight against lien, i think this is the best idea to negotiate with buyer and payoff in partial.

    I hope this will help in some case, if you need more help, i will be happy to help.

    Try to call these number, if they can help:
    Martha Dominguez, Executive Customer Relations Specialist: 714-792-4264

    Corporate Headquarters: 704-386-5972 / 704-386-5681