It is a courtesy and is used to help expedite release of earnest money.

Bills are being introduced to Congress to institute this at a federal level.https://www.kaine.senate.gov/press-releases/kaine-...

The other great thing is, at anytime you can get a new appraisal and if the property can support the loan on its own the bank will release the hold on 2nd piece of collateral.

Has anyone arranged to get a mortgage released through the MERS system?

Also to add: Ask about the draw process inspections - if you use the draw process for the rehab, the HML will most likely require an inspection before releasing the funds and the buyer/owner needs to pay for this.

Would it be possible to get a signed purchase contract from the seller before paying off the debt via a cashier's check or other form of payment, then moving forward with closing after the property is released? 

Here's some information on that:https://www.pennlive.com/news/2019/03/harrisburg-university-releases-renderings-on-new-building.htmlFor me personally, I don't invest in the Uptown area between Maclay Street (near Governors mansion) and Division st. 

Anyway...That being said they waited about 3 months from taking his class until they wanted to put in an offer, and that was early this year so in that time the banks stopped releasing the foreclosures.

I know CBRE just released their new CBRE Deal Flow site within the last couple weeks. 

In wake county NC, attorneys only release funds after recording.