Only California... I guess it is good that the owner of the property has some method available to clear these "old mortgages" from the title, but it sounds pretty expensive.  I guess I'm not sure what you mean by the "charge based on 1 1/2 times the amount of the original loan." Do they get this money back at some point?  I don't think it should cost the homeowner anything to get his title cleared for a lender's failure to perform its duties.  Unfortunately, I guess it could be necessary in some instances.

I would also caution any examiner from making underwriting decisions to remove an unreleased mortgage from a report.  As an examiner, I think it is our duty to show what is there... not what we 'think' or 'know' should be.

Thanks for sharing.  It is always interesting to hear how other states handle different situations.

Best,
Robert A. Franco
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