We bought our house 2 ½ years ago, we never missed any payments.
I just found out that the house deed was released a while ago by the bank. So there is no lien on my property. They did this by mistake since I did not finish my loan, we bought the house only 2 ½ years ago and we took a loan for 30 years. There is the personal guaranty (note) which is still valid, and we are paying the loan every month.
What does this mean? Is the house ours? What will happen if we stop paying the loan (mortgage) can the bank take the house if they do not have a lien?

:confused:

I can think of two actions the bank might take:

1) The bank could ask the court to reinstate the mortgage because it was released inadvertently. The court might rule you cannot profit from the error of another.

2) The bank could file a judgement against you (sue you based on the note) and collect the proceeds if and when you sell the house.

Geeee... sell it quick!


... then file for bankruptcy

The fact that they have a signed note will enable them to resinstate the lien.

The fact that they have a signed note will enable them to resinstate the lien.
That, plus the fact that when they signed all of the closing documents, they signed several things that said they would completely cooperate with the lender to repair any mistakes that may have been made in connection with the loan paperwork. So a failure to work with the lender to file a new lien will allow the lender to declare the loan in default and the note will become immediately due and payable.