Obtaining a Lien Release
If you had a loan at a failed bank which you paid off and the bank’s lien on your property was not released, we may be able to help. More information on lien releases
Confirm FDIC can help you with your lien release
FDIC most likely can assist you in obtaining a lien release if you were the customer of a failed bank that went into an FDIC Receivership.
To determine if FDIC might be able to provide your lien release, check to see if your bank was (acquired with government assistance):
If your bank failed within the last two years and another bank purchased the failed bank, you should contact the acquiring bank (see the Failed Bank List).
FDIC cannot process lien releases for:
- Banks that merged without government assistance, unless the successor bank failed (see BankFind)
- Banks that were acquired without government assistance, unless the successor bank failed (see BankFind)
- Credit Unions (see NCUA)
- Mortgage and finance companies (see appropriate Secretary of State Office)
Compile required documents and prepare request for a lien release
Review the required documents based on the type of loan you had:
Mail/fax request to FDIC DRR Customer Service and Records Research
You must send your request via fax or, if over 25 pages, by mail only. FDIC is unable to accept requests via email or phone.
Do not include your social security number in any correspondence.
Do not include a credit report as proof of payoff.
Requests are processed in the order they are received.
Allow 20 business days for processing once all information has been provided.
- Call the DRR Customer Service Center at 888-206-4662 between the hours of 8am - 4pm Central Time Monday through Friday (except federal holidays) to speak to a customer service representative.
Sorry, we cannot accept lien release requests by phone or email.
ABOUT LIENS AND LIEN RELEASES
What is a lien?
A lien is a lender's claim on property to ensure payment of a debt. For example, you borrow money to purchase property; the lender will record a Deed of Trust or Mortgage with the appropriate agency in the county in which the property is located. Once the document is recorded, the lenders interest in the property is secure. When the loan has been fully repaid, a release of lien should be provided by the lender. It is very important that the lien release document is recorded with the same agency as that of the original Deed of Mortgage. This will ensure the lien is removed from your property.
Why wasn't the lien released by the bank when I paid it off years ago?
Since the FDIC was not the lender, we are not able to answer that question. At this time, we will assist in providing a lien release if possible.
Can the FDIC help me?
The FDIC can help issue a lien release in the following cases:
- If the lien holder is a Bank or Savings and Loan that failed and has been placed in FDIC Receivership.
- The FDIC may be able to assist if the lien holder is an active or recently dissolved Subsidiary of a Failed Bank or Savings and Loan.
- The loan was paid off before the Institution failed.
- The loan was paid off to the FDIC after the Institution failed.
If you have any questions regarding the FDIC’s ability to assist with a lien release, please contact 888-206-4662, between the hours of 8am - 4pm Central Time Monday through Friday (except federal holidays).
YOUR LIEN RELEASE REQUEST
When can I expect a response?
Once a request has been received and set up in our tracking system, a notification email will be generated and sent to the requestor. The email will inform the requestor of the assigned tracking number and the expected completion date.
Because of the large volume of requests received at the FDIC, it typically takes up to 20 business days to process a request, once all required documentation has been provided by the requestor. If the required document(s) cannot be provided and our office has to research the loan, days may be added to our processing timeframe.
Why do I have to provide so much information? Don't you already have the records?
The FDIC is the Receiver of the failed bank, it is not the actual lender, and the failed bank records in our possession are limited. If there is an acquiring institution for a failed bank, in most cases, the records were transferred to the acquirer.