This is an interesting title question... the forum needs more of these. I would like to hear what people from other states think about this issue.
In Ohio, our mortgages are good for 21 years, plus the life of the loan. Therefor, this would still be an enforceable mortgage, until 2021. I would require a release. Someone needs to track down the mortgage holder and get a release. The only other option I can think of would be a quiet title action, in the event that the mortgagee cannot be located.
However, I have seen underwriters accept the risks of some older mortgages and insure over them on title policies. This would have to be decided by the underwriter on a case by case basis. In the event of a mortgage that old to an institutional lender, when they cannot be located due to various mergers, and it is no longer reported on the credit report, it may be deemed insurable. When the mortgagee is an individual and never would have been reported on a credit report, this is a bit more risky and may not be insurable.
Either way, I think your responsibility is to report it on as an encumbrance on the title and clearing it should be the duty of the seller to transfer marketable title.
Just my opinion...
Robert A. Franco
SOURCE OF TITLE
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