I believe in Ohio, that procedure is called a "quite title action" and is very similar to the VA procedure.  I would also check with the Bankruptcy Attorneys handling the case for the bankrupt lender.  CYA....the golden rule should apply, especially in these cases. 

I have had numerous "release request" come back with a payoff instead of a release because someone forgot to add in the pre-payment penalty or the original payoff was short, etc. 

While filing an affidavit with the proper cancelled paper work is probably ok depending on the title agency.  What happens when you get the unscrupulous borrower that faked the release documents? Why not, there are so many that forge check and other documents.  I am sure it isn't that hard.  Just some food for thought.