Mortgage UCC Filing Mix-Up - Lender Wants Both but SOS Rejected One

I've seen this exact issue before! The SOS systems sometimes flag potential duplicates when they see similar debtor names and collateral descriptions within a short time frame. Even though your mortgage is at county level and UCC is at state level, their automated systems can cross-reference. You'll probably need to call the SOS filing office directly and explain the dual-filing situation. They can usually override the system rejection once they understand it's intentional overlap for different types of collateral.

Check your collateral descriptions VERY carefully. The overlap might be in how you described fixtures or equipment that could be considered either real or personal property. Things like HVAC systems, built-in equipment, or anything permanently attached can create confusion between mortgage and UCC filings. Make sure your UCC-1 collateral schedule explicitly excludes anything that would be covered by the mortgage as a fixture.

I ran into a similar nightmare last month with overlapping filings. After spending hours on the phone with SOS and getting nowhere, I discovered this tool called Certana.ai that can upload and cross-check your mortgage documents against your UCC-1 filing. It caught the exact overlap issue that was causing our rejection - turned out we had inconsistent debtor name formatting between the two documents even though they looked identical to us. The tool highlighted the discrepancy immediately and we were able to fix it before refiling. Saved us days of back-and-forth with the filing office.

Wait, are you sure you need BOTH filings? Some lenders think they need dual coverage but actually the mortgage might be sufficient depending on your collateral type. What exactly is the personal property you're trying to secure with the UCC? If it's stuff that's permanently attached to the real estate, the mortgage might already cover it as fixtures.

The SOS rejection might also be timing-related. If you filed the mortgage and UCC-1 too close together, their system might flag it as a potential duplicate filing. I'd recommend spacing them out by at least 24-48 hours if you need to refile. Also, make sure your debtor names are EXACTLY the same format - sometimes one document has 'LLC' and the other has 'L.L.C.' and that can cause cross-reference issues.

Here's what worked for me in a similar situation: 1) Call SOS and ask for a supervisor, 2) Explain that you have intentional dual filings for different collateral types, 3) Ask them to add a note to your filing indicating it's related to [mortgage recording number], 4) Request manual processing. Most states have procedures for this exact scenario, you just need to talk to someone who knows the workaround.

Before you refile anything, double-check that your UCC-1 debtor name exactly matches what's on the mortgage. I mean EXACTLY - same spelling, same punctuation, same entity designation. Even a small difference can trigger system flags. Also verify that your collateral descriptions don't overlap. The mortgage covers real property and fixtures, so your UCC should only cover truly personal property that can be moved.

Another thing to check - are you filing in the right state? If the debtor is organized in a different state than where the property is located, you might need to file the UCC-1 in the debtor's state of organization, not the property location state. This can create confusion when you've got a mortgage filed locally but UCC filed in a different state.

I actually just used that Certana tool someone mentioned earlier for a similar document consistency check. It's pretty slick - you upload your mortgage and UCC-1 and it immediately flags any potential conflicts or inconsistencies. Found several issues we would have missed manually, including subtle formatting differences in debtor names and overlapping collateral descriptions. Definitely worth trying before you refile and risk another rejection.

UPDATE: Called the SOS office this morning and spoke with a supervisor. Turns out the issue was exactly what several of you suspected - our collateral description included 'fixtures' which their system flagged as overlapping with the mortgage. They're processing it manually now with an amended collateral description that excludes fixtures. Should be cleared by end of week. Thanks everyone for the guidance!