The solution to my problem was a 'Lien release' document. A copy of this document is sent to the original mortgage holder, the new mortgage holder, the county recorder, and the homeowner (I'm sure it was included in the big pack of documents I never looked at).

My problem seemed to come from the county not marking the old Lien released when they were sent the document.

I was able to get a copy from the old mortgage company (but i could also have got it from my current mortgage company)... But I should have pulled that document out of the large stack of papers they send out after everything closes and stashed it in a safe place. <- Keep your Lien release documents!

From everybody I called this is not a rare problem. If I had a copy of my original Lien release it would have saved me a week of back-and-forth with the banks.

lesson learned I guess... save important papers.