Missing or Lost Assignments or Releases

"For many years County Clerks have been receiving Affidavits of Missing or Lost Instruments associated with Assignments and Releases. The customer's argument has been the Release cannot be filed because they cannot show that they are the legal holder of the mortgage. New language in KRS 382.365 provides statutory assistance for these customers. The statute has always given the property owner or a party with interest the instruction to file a proceeding in District or Circuit Court, the new language is much more specific in the necessary steps that must be taken. It also directs the master commissioner to execute and file a document with the county clerk for assignments or releases.

382.365 Release of lien, with notice to property owner, within thirty days of satisfaction - Assignments of liens - Proceeding against lienholder in District Court or Circuit Court - Liability of lienholder when lien not released or notice not sent - Notice to state or lienholder - Damages."