Finance
In Louisiana, the 'Cancellation of Mortgage' must be filed within a reasonable time after payoff. If a lender unreasonably delays filing the cancellation, the lender may be liable for:
AOnly the cost of the filing fee
BDamages caused by the delay, including costs to clear the title and any resulting closing delays✓ Correct
CNothing — there is no requirement to cancel mortgages promptly
DA $25 statutory fee only
Explanation
Louisiana law requires mortgagees to cancel (release) paid mortgages promptly. Failure to file a timely cancellation can cloud the title, delay sales or refinancing, and expose the lender to liability for resulting damages.
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