Don't panic. This is usually pretty easy to resolve.
What Happens Next?
We start by researching the original bank through the FDIC to determine what happened to it.
In most cases, the bank was:
- Acquired by another bank
- Merged with another bank
- Renamed
- Taken over by a successor institution
Once we identify the successor bank, we contact them to obtain the proper Satisfaction of Mortgage so the old mortgage can be removed from the vessel's USCG record.
What If There Really Is No Successor Bank?
That does happen, but it's not common.
If the bank truly closed and there is no successor institution, we contact the FDIC for assistance and research the bank's history to determine how to obtain the documentation necessary to satisfy the mortgage.
The bottom line
And when there truly isn't a successor, we dig a little deeper and work with the FDIC to determine the next step.
It sounds much scarier than it usually is. ⚓
Related reading: why a paid-off loan can still appear on the Abstract and abstracts, liens and mortgages.
Official sources
- U.S. Coast Guard National Vessel Documentation Center (NVDC)
- FDIC BankFind Suite — bank history and successor research
Requirements change. Confirm current requirements with the applicable agency or a qualified professional for your specific transaction.