I have not run into it very often. The last time I did the statute in effect at the time required the affidavit to be drafted by an attorney or title company official and that it have attached to it evidence of payment such as the payoff letter and the check(s) by which payment has been made.

When I have run into it, I normally noted the circumstances under which the mortgage was released in my abstract, and recommended further inquiry as to whether the mortgage was properly released. This generally tosses it back to the title insurance carrier to make a decision as to whether to insure the matter or to take exception to it. If the title insurance company takes exception to it...it becomes the seller's problem to have it released and produce marketable title.

In the few cases in which I have run into it the releases could be obtained. All mortgage lenders are required to be licensed by Connecticut's Banking Commission. The Commission maintains records of all licensed lenders and their successors in interest. If the mortgage were not satisfied at the time the lender ceased doing business it most likely would have been acquired by the FDIC, and there is further tracebility. In those instances in which there had been an untraceable prior assignment which was not recorded or a release for a fully satisfied mortgage which was not recorded, it probably would be necessary to rely on the affidavit if the supporting documents could be obtained.

The buyer would also have the ability to sue the seller under his warranty deed if the mortgage was not listed in the deed as an exception to the warranty.