Missing or Lost Assignments or Releases

For many years County Clerks have been receiving Affidavits of Missing or Lost Instruments associated with Assignments and Releases.  The customer's argument has been the Release cannot be filed because they cannot show that they are the legal holder of the mortgage.  KRS 382.365 provides statutory assistance for these customers.  The statute has always given the property owner or a party with interest the instruction to file a proceeding in District or Circuit Court, and this language is much more specific in the necessary steps that must be taken.  It also directs the master commissioner to execute and file a document with the county clerk for assignments or releases.  

We should refer our customers with these problems to KRS 382.365.  The county clerk cannot solve this problem for customers – the proper authority to assist the lienholder is district or circuit court – we do not record the court order – we record the release or assignment document prepared by the Master Commissioner.

Effective: July 12, 2006