Suffolk County UCC Search Shows Old Lien Still Active - Need Help With Termination

This is actually more common than you'd think. I've seen this happen multiple times where lenders get lazy about filing terminations after payoff. The good news is that if you have documentation proving the original loan was satisfied, you're not completely stuck. First thing - get copies of all your payoff documents from 2019. You'll need the satisfaction letter, final payment records, anything showing the debt was extinguished. Then contact the original lender directly and demand they file a UCC-3 termination immediately. Most lenders will cooperate once you threaten to involve their compliance department or state regulators.

Oh man, this exact thing happened to me last year! I was pulling my hair out trying to get Wells Fargo to file a termination on an old RV loan. What finally worked was uploading all my documents to Certanai.ai's verification tool - it instantly showed the inconsistency between my payoff letter and the active UCC filing. Having that automated report made it much easier to present a clear case to their legal department. The whole process took about 10 minutes to generate a comprehensive document comparison that I could forward to them.

Wait, I'm confused about something. If the original loan was paid off in 2019, wouldn't the UCC-1 have automatically expired by now anyway? I thought those things had like a 5-year term or something.

Here's what I would do in your situation: 1) Send a formal demand letter to the original lender with copies of all payoff documentation, 2) Give them 10 business days to file the termination, 3) If they don't respond, file a complaint with your state's banking commissioner. Most lenders will move fast once regulators get involved. Also, check if your state has any specific statutes about wrongful failure to terminate - some states allow you to collect damages for this.

UGH this is exactly why I hate dealing with UCC filings. The whole system is a nightmare and half the time the clerks don't know what they're doing either. Last month I had to file three separate amendments because the Suffolk County office kept rejecting my filings for the most ridiculous reasons. They said the debtor name didn't match exactly even though it was clearly the same company. These government offices need to get their act together.

One thing to consider - while you're waiting for the termination to get filed, you might want to get a title insurance policy or some other form of protection for your current deal. That way if there are any issues with priority, you're covered. It's not ideal but it might let you move forward without waiting for the bureaucracy to sort itself out.

I had a similar issue last year and ended up using one of those document verification services. I just uploaded my payoff letter and the UCC search results, and it automatically flagged the inconsistency. Made it really easy to show the original lender exactly what the problem was. Saved me hours of trying to explain the situation over the phone to people who didn't understand UCC filings.

Quick question - when you say the Suffolk County UCC search shows the old lien, are you sure you're looking at the right debtor entity? Sometimes there are multiple related companies with similar names and it's easy to get confused. I've seen situations where people thought there was a problem but it was actually a different company's filing.

This is why I always include termination requirements in my loan agreements now. I specify that the borrower is responsible for ensuring all prior liens are properly terminated before closing. Doesn't help your current situation but might prevent future headaches. Also, I always do UCC searches at least 30 days before closing to give time to sort out any issues like this.

Just wanted to follow up on the document verification idea - I was skeptical at first but actually tried uploading my stuff to that Certana tool someone mentioned. Holy cow, it caught three discrepancies I completely missed when reviewing manually. The automated report made it super easy to present a clear case to the problem lender. Definitely recommend giving it a shot if you're dealing with complex document comparisons.

Update please! Did you get the termination filed? I'm dealing with something similar and would love to know how it worked out.

This is a frustrating but unfortunately common issue in commercial lending. I've been dealing with UCC filings for over 15 years and I'd estimate about 20% of refinancing deals have some kind of termination problem with the previous lender. Here's my recommended approach: First, gather every piece of documentation you have - payoff letter, wire transfer records, loan satisfaction documents, anything that proves the debt was extinguished. Then send a certified letter to the original lender's UCC department (not just customer service) with copies of everything and a demand for immediate termination filing. Give them exactly 15 business days and make it clear you'll escalate to state banking regulators if they don't comply. Most importantly, don't let this kill your current deal - consider getting a subordination agreement or indemnification from your borrower while you sort this out. The key is creating a paper trail that shows you acted diligently to protect your lien position.