My father finished paying off the mortgage on the house ?

If there is no mortgage lien on the house since your father paid it off, why would you need to inform the bank you are selling the home? Keith Jean-Pierre Managing Principal The Dapper Agents Operations In: NY, NJ, FL & CA

I am not sure how you were able to sell the home and transfer title with the mortgage being satisfied. There is a mortgage lien on the property when its financed. Did you not use a real estate attny or title company for the sale transfer? That is what they do -- insure clear title.

It depends on where you were at in the process of the payoff. If the bank received confirmation of last payment there should have been a lien release on the title. You want to make sure you receive that before selling the property.