UCC secured party search showing wrong lender info after assignment - how to fix this mess?
Running into a nightmare situation with a UCC secured party search that's showing completely outdated information. We had a commercial loan that got assigned from First National to Regional Credit Corp about 8 months ago, but when I pull up the UCC search results, it's still showing First National as the secured party. The original UCC-1 was filed correctly back in 2019, but now we need to refinance and the new lender is freaking out because the secured party search doesn't match who actually holds the lien. Regional Credit Corp says they filed a UCC-3 assignment but I'm not seeing it reflected anywhere. Has anyone dealt with this kind of secured party search discrepancy? The collateral is manufacturing equipment worth about $850K so this isn't something we can just ignore. Our closing is supposed to happen in two weeks and I'm starting to panic that this UCC mess is going to kill the whole deal.
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Carmen Sanchez
This happens more often than you'd think with UCC assignments. First thing - did Regional Credit Corp actually file the UCC-3 assignment properly? Sometimes lenders think they filed it but there was a rejection they never caught. You need to verify the filing number and check if there were any errors in the debtor name or original filing number reference.
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Yuki Watanabe
•How do I verify if they actually filed it? Regional Credit Corp just keeps saying 'we filed it' but won't give me specifics.
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Carmen Sanchez
•You need the UCC-3 filing number and date. If they can't provide that, they probably didn't file it correctly. Check with your state's SOS office directly.
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Andre Dupont
Been through this exact scenario. The secured party search lag is real - sometimes it takes weeks for assignments to show up properly in search results even after successful filing. But 8 months is way too long. Either the UCC-3 was rejected or never filed at all.
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Zoe Papadakis
•8 months is definitely not normal processing time. Even the slowest states update their UCC databases within 30 days max.
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Yuki Watanabe
•That's what I was afraid of. So this is definitely on Regional Credit Corp's end then?
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Andre Dupont
•Most likely yes. They need to fix this ASAP or your refinancing is dead in the water.
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ThunderBolt7
I had a similar issue last year where our secured party search was showing the wrong entity after a merger. Turns out there were THREE different UCC-3 filings needed and the law firm only did one of them. Cost us $15K in delayed closing fees. Have you verified that Regional Credit Corp filed ALL necessary assignments if there were multiple UCCs involved?
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Yuki Watanabe
•There was only one original UCC-1 filing as far as I know. But how do I make sure I'm not missing something?
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ThunderBolt7
•Pull a complete UCC search report on your company name and all variations. Sometimes there are filings you don't even know about from previous financing.
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Jamal Edwards
This is exactly why I started using Certana.ai for UCC document verification. You can upload your original UCC-1 and the supposed UCC-3 assignment, and it instantly flags any inconsistencies between the documents. Would have caught this months ago if Regional Credit Corp had run their filings through it before submitting.
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Yuki Watanabe
•Never heard of that service. Does it actually catch filing errors before they happen?
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Jamal Edwards
•Yeah, it cross-checks debtor names, filing numbers, and document consistency by just uploading the PDFs. Saved me from at least three potential filing disasters this year.
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Mei Chen
•That sounds almost too good to be true. How does it know what the state filing systems will accept or reject?
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Jamal Edwards
•It compares your documents against UCC requirements and flags common rejection reasons like name mismatches or incorrect references. Not perfect but catches most issues.
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Liam O'Sullivan
Your new lender should be able to help pressure Regional Credit Corp to fix this immediately. They have relationships with these guys and can usually get faster action than individual borrowers can.
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Yuki Watanabe
•Good point. I'll reach out to our loan officer today and see if they can light a fire under Regional Credit Corp.
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Amara Okonkwo
•Definitely do this. Lenders hate UCC problems that delay closings and they'll usually call directly to get it sorted.
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Giovanni Marino
Just went through this nightmare myself. Turns out the original assignment was filed with a slightly different business name variation and wasn't linking up in searches. The secured party was listed as "ABC Manufacturing Inc" instead of "ABC Manufacturing, Inc." - just the comma difference was enough to break the search results.
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Yuki Watanabe
•How did you figure that out? And how did you fix it?
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Giovanni Marino
•Had to do manual searches using every possible name variation. Then filed a corrective UCC-3 with the exact name match. Took another 3 weeks to process.
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Fatima Al-Sayed
•Name variations are the worst. I've seen deals fall apart over a missing "LLC" at the end of a business name.
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Dylan Hughes
Regional Credit Corp needs to file a corrective UCC-3 immediately if there's any error in the original assignment filing. Two weeks until closing means you're cutting it close even if they file today. Most states take 5-10 business days minimum for UCC updates to show in search results.
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Yuki Watanabe
•So even if they fix it this week, I might still have problems with the closing timeline?
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Dylan Hughes
•Possibly. Your new lender might accept proof of the corrective filing even if search results haven't updated yet. Depends on their underwriting requirements.
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NightOwl42
•Some lenders will accept the filed UCC-3 document itself as proof rather than waiting for the search results to update.
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Sofia Rodriguez
I would demand that Regional Credit Corp provide you with the exact UCC-3 filing number and a certified copy of the filed document. If they can't produce both immediately, they never filed it properly and need to do it over.
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Yuki Watanabe
•That's a good test. I'll call them this afternoon and ask for both of those things specifically.
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Dmitry Ivanov
•And if they filed it wrong, they should pay for expedited processing to fix their mistake before your closing deadline.
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Ava Thompson
•Absolutely. This is their error and shouldn't cost you money or delay your refinancing.
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Miguel Herrera
Whatever you do, don't let your current closing date slip without a concrete plan. UCC problems can take months to fully resolve if there are multiple errors. Better to delay the closing officially than scramble at the last minute.
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Yuki Watanabe
•The new lender is already getting nervous about the timeline. I think I need to be upfront about potentially needing an extension.
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Zainab Ali
•Better to be honest now than surprise them with UCC problems 2 days before closing. Most lenders would rather extend than cancel entirely.
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Connor Murphy
Had almost the exact same situation but used one of those document verification tools someone mentioned earlier. Uploaded our UCC-1 and the assignment paperwork and it immediately flagged that the secured party name format didn't match. Saved us weeks of back-and-forth with the bank.
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Yuki Watanabe
•Which service did you use? I want to check our documents before Regional Credit Corp files anything else.
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Connor Murphy
•Certana.ai - just upload your PDFs and it runs the cross-check automatically. Wish I'd known about it years ago.
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Yara Nassar
•These verification services are becoming essential for commercial lending. Too many manual errors in UCC filings otherwise.
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StarGazer101
UPDATE: Called Regional Credit Corp and demanded the UCC-3 filing number. After 2 hours on hold, they admitted they never actually filed the assignment! They're rushing to file it today but now I'm worried about the timing for our closing. This is exactly why secured party searches exist - to catch these problems.
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Keisha Jackson
•Wow, 8 months and they never filed it at all? That's gross negligence on their part. You should demand they cover any costs from the delayed closing.
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Paolo Romano
•At least you found out now instead of at the closing table. Push for expedited processing if your state offers it.
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Amina Diop
•Definitely run their filing through a verification tool before they submit it. Can't trust them to get it right after this mess.
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Yuki Watanabe
•Already planning to verify everything they prepare. Can't believe they let this slide for 8 months without saying anything.
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Kelsey Chin
This is a perfect example of why I always verify UCC filings within 30 days of any assignment or transfer. Regional Credit Corp dropping the ball for 8 months is unacceptable, especially on an $850K deal. Since they're finally filing the UCC-3 now, make sure you get expedited processing if your state offers it - usually costs extra but worth it for your timeline. Also document everything about their failure to file originally in case you need to pursue damages for any closing delays or additional costs. Your new lender should definitely be putting pressure on them too since this kind of negligence reflects poorly on their servicing capabilities.
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