Bill would create curative process for undischarged mortgages, witnesses say it would reduce title litigation

Representative Bill Boyd presented House Bill 437, a statutory curative measure for undischarged mortgages recorded in the registry of deeds. Boyd said the bill mirrors procedures in Massachusetts and was developed with broad stakeholder input from bankers, realtors and the banking department.

Witnesses told the committee that undischarged mortgages create delays and substantial costs in real estate closings. Joni McIntyre, past president of the New Hampshire Association of Realtors, described the buyer and seller experience: closings can be delayed, rate locks and moving plans disrupted, and buyers face uncertainty when a mortgage appears on title and the lender or successor cannot be located.

Pat McNicholas, a retired real-estate attorney who frequently litigated to clear titles, said he repeatedly filed Superior Court actions to secure discharge orders and noted that on dozens of such matters "not once was 1 ever contested"; nonetheless, he and clients paid substantial legal fees. McNicholas estimated the cost to resolve an undischarged mortgage through court at roughly $5,000–$10,000 per matter.

Supporters said HB 437 would provide an administrative, statutory path to clear stale mortgage records, reduce needless court filings and lower costs for buyers and sellers.

Ending: The hearing concluded with uniform support from real-estate industry witnesses and title professionals who said the bill would streamline cure of record defects and reduce time and expense required to close transactions affected by undischarged mortgages.