How to Remove a Third Mortgage Lien on a Home

You can get a third lien removed from your home.

A third mortgage lien may have been used to secure a lender's interest in your property for a home improvement loan. Once the obligation is satisfied, your third lien mortgage holder should file a lien release within the time frame provided by your state. To expedite the process, you can file a lien release that removes any claim your third lien mortgage holder has against your home.

Instructions

1. Request a written payoff figure from your third lien mortgage holder. Inform your lender of the date that you will make your final loan payment. Ask for a payoff statement that reflects figures that are good until the date you provided.

2. Obtain a certified check from your bank for the payoff amount to satisfy the third mortgage lien obligation.

3. Mail your certified check to your third lien mortgage holder. Use a delivery method that gives you the ability to track your item, such as express delivery options provided by the U.S. Post office or a courier service.

4. Call your third mortgage lender to request a written lien release.

5. Take the original lien release from your lender to the county recorder's office. Complete a Lien Release form and pay the applicable filing fees, which vary by county, but are typically less than $30.

Tips & Warnings

• If you are facing a hardship that prevents you from paying on your third mortgage and you owe more than your house is worth, an attorney may be able to initiate a Chapter 13 bankruptcy plan that allows a court-appointed judge to remove your third mortgage lien.

References

• Rinne Law: Lien Strip a Mortgage With Chapter 13
• Fox Business: Does Paying Off Your Mortgage Early Make Sense?