There is a lien release problem in this country. When satisfied
mortgages are released — lenders and borrowers (and even regulators) go
home happy — but the documentation stating as much is often not properly
recorded, which leads to a host of issues. The reason for this problem
isn’t anything malicious; rather it’s often a matter of incentives, or a
lack thereof.
The mortgage lien release is important, and all
parties will say as much. A land record world without them isn’t far
from pure chaos. The act of actually releasing said lien, however, when
prioritized among the various tasks and procedures throughout a mortgage
closing, isn’t important enough to any one party to get it accomplished
in a consistent manner. No one has the proper amount of incentive,
despite various techniques implemented to try and create these
incentives.