Consumer complaint received 2016-11-05
Product: Mortgage — Home equity loan or line of credit
Issue: Loan servicing, payments, escrow account — 
Company: PNC Bank N.A. (AL)

My wife and I attempted to refinance our home to obtain funds to replace the roof, reduce revolving debt, and home improvement. Just prior to closing/settlement the lender 's attorney identified a cloud on the title. The cloud was a paid off HELOC with PNC Bank from two years ago which PNC had not filed a mortgage release. Attempts to get this issue resolved have met with us and our lender being handed from office to office, each stating this is not their department 's responsibility or refusal to return calls. We, with the assistance of our lender, have filed a formal request for release, but have no idea whether it has been received, or delivered to the proper lien release department. 

Two years ago when we received a HELOC loan Maturity Date notice it was clear from the letter that if we had paid off the HELOC at the Maturity Date a release was to be issued by PNC. The HELOC was paid off on XXXX/XXXX/XXXX, 5 days prior to the Maturity Date. Based on the letter it was not felt that a formal request for lien release was required. Frankly, it is my lender and the settlement lawyer 's opinion that having failed to issue this lien release is in violation of Alabama XXXX XXXX XXXX, in any case we have made a formal request for release which starts the 30 day clock ( beginning XXXX/XXXX/XXXX ). There is a subsequent Alabama XXXX XXXX XXXX establishing a penalty for failure to meet the 30 day time frame. While such a penalty is insignificant to a bank as large as PNC, it would be an interesting exercise to determine if PNC 's delinquency of providing lien release is endemic and reflects on the PNC 's sound banking practices. 

Dealing with the frustrations and delays of a clouded title has resulted in substantial stress and loss of sleep trying to determine an expedient resolution of this issue. 

Pertinent Facts : 1 ) We refinanced our home with PNC in XXXX, it was clear on the XXXX that part of the proceeds of the refinancing was to pay off the existing mortgage with XXXX XXXX XXXX AND pay off our PNC HELOC. Additionally, there was an XXXX to the XXXX stating the funds from the proceeds of the refinancing with PNC were to settle these XXXX mortgages. PNC filed a release for the existing loan and failed to file a lien release for the pay off of HELOC. 
2 ) It is clear from the HELOC Maturity Date letter of XXXX XXXX, XXXX that PNC 's policy is to file a lien release if the balance of the account is {$0.00} at the Maturity Date. The PNC HELOC account statement dated XXXX/XXXX/XXXX clearly states that PNC received funds to zero the account prior to the maturity date. 
3 ) Failure to remove this cloud on the title of our property is violation of XXXX Code and may jeopardize the interest rate lock on our in-process refinancing effort and/or cost us extension fees. 
4 ) PNC 's lack of being helpful in clear this oversight on their part is not indicative of a bank that has safe and sound finance practices. 

The lesson to be learned is for HELOC payoffs one must verify that a lien release has been filed. To be safe one should file a request with the financial institution who held the HELOC.