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Court allows secured creditor to retain mortgage lien after mistaken release and reinstatement prior to bankruptcy

March 12, 2019
Exterior of modern office building

If a secured creditor mistakenly releases its lien, it should correct the error as soon as possible. A recent decision from the U.S. Court of Appeals for the Seventh Circuit implies if the secured creditor is diligent, it may not be harmed by the inadvertent release, even if the borrower files for bankruptcy. READ MORE