Santander Bank Delays in Mortgage Payoff Recordings New York Class Action

When a person pays off a mortgage, both the principal and interest, the mortgage lender must present to the county clerk a satisfaction of mortgage or certificate of discharge document recording this fact. The complaint alleges that Santander Bank, NA delays in sending this type of document in and therefore owes its customers money.

The class for this action is all persons who were a mortgagor where the mortgage was secured by real property in New York state and for which the principal, interest, and any other amounts due was paid after March 20, 2014 but Santander Bank failed to present a certificate of discharge or satisfaction of mortgage within thirty days to the recording officer of the county where the mortgage was recorded.

New York state laws give a mortgage lender thirty days to present the satisfaction of mortgage. If the lender does not present it within thirty days must pay the borrower $500; if the delay is sixty days, the lender must pay the borrower $1,000; and if the delay is as much as ninety days, the lender must pay the borrower $1,500.

The recording of the satisfaction of a mortgage is important. First, it is needed to determine clear title to a property. The complaint claims that “there is a real possibility that a large loss by a title company as a result of the widespread failure of banks to timely present mortgage satisfactions may disrupt the entire system for transferring residential property in New York State.” Second, the appearance that the mortgage remains unpaid may affect the ability of the borrower to obtain credit.

Plaintiff Joseph Parrish obtained a mortgage from Santander in 2007 to buy his home in Ft. Edward, New York. The mortgage was recorded by the clerk for Saratoga County.

In 2013, Parrish took out a second mortgage on his home. This, too, was recorded by the clerk for Saratoga County. That same year, Parrish and Santander agreed to consolidate the two mortgage loans. This consolidated loan was also recorded by the county clerk for Saratoga County.

On May 23, 2019, Parrish paid off this consolidated mortgage loan. However, the complaint alleges that the payoff was not recorded until August 1.

The complaint alleges that Santander has violated New York’s Real Property Actions Law and its Real Property Law

The complaint asks for compensatory, exemplary, statutory, incidental, consequential, and punitive damages, along with the costs of the suit, attorneys fees, and pre-judgment and post-judgment interest, and “any and all such other relief as the Court deems appropriate.”

Article Type: Lawsuit
Topic: Real Estate

Most Recent Case Event

Santander Bank Delays in Mortgage Payoff Recordings New York Complaint

June 15, 2020

When a person pays off a mortgage, both the principal and interest, the mortgage lender must present to the county clerk a satisfaction of mortgage or certificate of discharge document recording this fact. The complaint alleges that Santander Bank, NA delays in sending this type of document in and therefore owes its customers money.

Santander Bank Delays in Mortgage Payoff Recordings New York Complaint

Case Event History

Santander Bank Delays in Mortgage Payoff Recordings New York Complaint

June 15, 2020

When a person pays off a mortgage, both the principal and interest, the mortgage lender must present to the county clerk a satisfaction of mortgage or certificate of discharge document recording this fact. The complaint alleges that Santander Bank, NA delays in sending this type of document in and therefore owes its customers money.

Santander Bank Delays in Mortgage Payoff Recordings New York Complaint
Tags: Mortgage-Related Unfair Practices, Satisfaction of Mortgage